The Indian startup offers a marketplace and credit options for farmers in India to acquire new or used tractors, harvesters and other farm machinery. It raised $22.6 million in Series A financing, led by Belgian agriculture-focused impact investor Astanor.
Existing investors Info Edge and Omnivore, which co-led the startup’s seed round in 2022, also participated. The fresh funding, consisting of $5.6 million in debt and $17 million in equity, will support the startup’s fintech arm, FINJ.
Rural lending
Less than half of Indian farms are mechanized, in part because farmers cannot access credit to finance such purchases. Tractor Junction launched its online marketplace in 2018 and later launched a financing arm to provide credit and insurance.
The loans are offered in partnership with 25 financial institutions, including HDFC Bank, Bank of Baroda and Poonawalla Fincorp. Tractor Junction says it has helped 30,000 farmers purchase machinery in the last two years.
