Indian digital tractor and agri-equipment marketplace Tractor Junction has raised $22.6 million (₹200 crore) in Series A funding round led by Astanor, with participation from Info Edge and Omnivore. The new funds will support the expansion of its vehicle, service and financing offerings in rural markets, and help the company strengthen links with sellers, Original Equipment Manufacturers (OEMs) and dealers while growing its digital and offline networks.
The funding includes $17 million in equity and $5 million in debt, bringing the company’s total capital raised to about $28 million (₹247.77 crores) since its $5.7 million (₹50.56 crores) seed round in April 2022. The investment also marks Astanor’s first entry into India.
The latest investment allows us to accelerate financial inclusion and bring down the true cost of rural credit. Also, it is a huge responsibility as Astanor has chosen us to mark their entry into India and we are humbled by the trust that they have shown in us and at the same time, continued support of our existing investors means a lot to us.
Founded in 2018 by Rajat Gupta, Shivani Gupta and Animesh Agarwal, Tractor Junction combines technology, physical retail and financial products to build a full-stack rural vehicle ecosystem. The company operates COCO (company-owned, company-operated) stores across 75 cities in six states, where farmers can buy, sell, finance and insure used tractors and commercial vehicles.
According to Tractor Junction, its fintech arm FINJ, launched in January 2024, has disbursed more than $187.51 million (₹1,500 crore) in partnership with 25 lending institutions. The platform reportedly relies on technology-led assessments and data-driven underwriting to provide credit at interest rates that are understood to be 30% lower than those typically available in the unorganised market.
Scaling Tractor Junction Operations
The company expects FINJ”s loan disbursals to reach about US$ 565 million (₹5,000 crore) next year and potentially around US$ 1.13 billion (₹10,000 crore) thereafter. It estimates that financing makes up nearly 70% of its sales, and notes that its expertise in valuing used tractors has become a key advantage as lenders depend on its pricing data to underwrite loans more reliably.
The company also plans to expand its COCO network from the current footprint to nearly 250 centres over the next 18–24 months. It is also widening its geographic reach, targeting an increase from 12 to 18 states while doubling penetration in existing markets.
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According to Rajat Gupta, CEO and Founder of Tractor Junction, farmers have long been excluded from formal finance and dependable vehicle ownership. He said the company, through Tractor Junction and FINJ, is working to change this by combining data, technology and on-ground presence, a model that has enabled more than 30,000 farmers to adopt mechanisation in the past two years.
He further added that the company will channel nearly $5.6 million (₹50 crore) into expanding its offline presence. He believes the commerce and fintech businesses will drive the next phase of growth, supported by the platform’s expanding reach and the company’s widening offline footprint.
Investor Perspective
The round is led by Astanor, a Europe-based global impact fund with a track record of supporting agriculture and food-system innovators. This marks the firm’s first investment in India, signalling its confidence in the model and market Tractor Junction is building. The round also includes participation from existing backers Info Edge and Omnivore, underscoring continued support from its earlier investors.
India’s rural economy is central to the future of sustainable food systems. Tractor Junction has built a trusted and affordable platform for rural mechanisation by combining technology, on-the-ground reach, and fintech innovation. We’re excited to support these mission-driven founders to scale impact in rural communities.
Kitty Agarwal, Partner at Info Edge Ventures, said the founding team has built the business with strong fundamentals and a clear focus on the rural customer. She noted that serving rural consumers with both commerce and financial products requires a purpose driven and customer centric approach, and highlighted that the company’s model aims to align commercial performance with measurable impact.
Abhilash Sethi, Investment Director at Omnivore, noted that the company has expanded from a tractor discovery platform into a broader rural automotive offering. He said the founders’ approach has delivered tangible value for farmers and rural entrepreneurs, and added that the entry of Astanor brings a global perspective as the company moves into its next phase of growth.
Expanding Footprint in Rural Mobility
As per Tractor Junction, the company has reported 13x revenue growth over the past three years, indicating strong acceptance among rural customers. The platform can potentially emerge as one of the largest digital platform for rural mobility, offering access to a broad set of vehicles, financing options and related services in the country.
The new capital gives the company room to accelerate its expansion in rural mobility, upgrade its technology stack and strengthen its financing capabilities. With a wider network of centres, deeper OEM partnerships and improved data-led underwriting, the platform could potentially reshape how rural households access vehicles, credit and after-sales services.
Its ability to scale responsibly will depend on maintaining trust with customers, executing consistently across diverse regions and demonstrating that its model can deliver both affordability and reliability in markets long under served by formal channels.