Tractor Junction, which claims to be India’s largest rural auto-fintech platform, has raised $22.6 million (Rs 200 crore) in its Series A round as it looks to expand its operations.
According to an announcement, the round includes $17 million in equity, led by Europe-based impact fund Astanor, marking its first investment in India. Existing backers Info Edge and Omnivore also participated.
The round additionally includes $5.6 million in debt.
Founded in 2018, Tractor Junction operates a platform for India’s rural mobility sector, offering services and tools aimed at improving access to farm mechanisation.
The firm plans to use the new capital to expand its digital platform, increase its on-ground reach, and develop its fintech services. The initiatives are aimed at improving access to reliable vehicles and credit for farmers.
“For far too long, farmers have been locked out of formal finance and quality vehicle ownership,” said Rajat Gupta, CEO & founder of Tractor Junction.
“The latest investment allows us to accelerate financial inclusion and bring down the true cost of rural credit,” he added.
Tractor Junction currently operates company-owned, company-operated (COCO) stores in 75 cities across six states, where farmers can buy, sell, finance, and insure used tractors and commercial vehicles.
It focuses on the used-vehicle market to serve small and marginal farmers who often cannot afford new machinery, offering inspected vehicles and access to institutional financing.
“India’s rural economy is central to the future of sustainable food systems… We’re excited to support these mission-driven founders to scale impact in rural communities,” said Hendrik van Asbroeck, Partner at Astanor.
Over the last three years, Tractor Junction claims to have achieved 13x revenue growth. It is said to be the largest digital platform in the rural vehicle ecosystem with over 6 crore yearly visitors and over 50 OEM partnerships across tractors, commercial vehicles, three-wheelers, and two-wheelers.
