Tractor Junction Bolsters India’s Rural Mobility with $22.5M Investment Led by Astanor

Tractor Junction, the digital marketplace that has become a key player in India’s rural mobility and used-tractor ecosystem, has secured $22.5 million (Rs 200 crore) in new funding. The round, comprising $17 million in equity and $5.5 million in debt, was led by Europe-based impact investor Astanor, marking its first investment in India, with continued participation from Info Edge and Omnivore.

For a country where basic mechanization still eludes a large share of the farming population, the raise lands at a defining moment. India has roughly 130 million farming households, yet only around 6 million own the country’s nine million tractors. A fragmented marketplace, uneven access to information, opaque pricing for used farm vehicles, and limited formal financing options have long constrained progress. By bringing transparency, certified inventories, and embedded credit tools into one system, Tractor Junction is aiming to bridge these structural gaps at scale.

Founded in 2018 by Rajat Gupta, Shivani Gupta, and Animesh Agarwal, the company first emerged as an online platform enabling farmers to research and compare tractors and farm equipment. After graduating from the AgFunder-backed GROW Impact Accelerator in 2019, Tractor Junction expanded into a full-stack model that blends digital discovery with offline retail and data-led financing. Today, its platform attracts more than 60 million yearly visitors and partners with over 50 OEMs across tractors, commercial vehicles, three-wheelers, and two-wheelers.

The new investment will strengthen the company’s digital and physical network, build out its refurbishment and certification capabilities, and accelerate the growth of FINJ, its fintech vertical. Launched in January 2024, FINJ has already disbursed more than Rs 1,500 crore in loans through 25 lending partners, supporting farmers who are often new to formal credit markets. With most rural borrowers historically reliant on informal lenders charging 30–40% interest, Tractor Junction’s data-driven underwriting allows them to secure credit at rates closer to 20%, and eventually 13–15% as they build repayment history.

“For far too long, farmers have been locked out of formal finance and quality vehicle ownership,” said CEO and cofounder Rajat Gupta. “This investment allows us to accelerate financial inclusion and reduce the cost of rural credit. Astanor’s entry into India through Tractor Junction, alongside the continued support of Info Edge and Omnivore, reinforces confidence in our approach.”

Tractor Junction’s marketplace, offline commerce business, and financial services arm form a connected ecosystem. The company operates 75 company-owned outlets across six states, has sold 7,000 tractors through its retail network in the past three years, and has enabled more than 30,000 farmers to mechanize operations over the last two. Its AI-based pricing engine, fed by years of digital and physical transaction data, improves valuations in a market where asset pricing has often been inconsistent and unreliable.

This integrated model has translated into strong business performance. Operating revenue nearly doubled in FY 2025 to ₹120.8 crore ($13.65 million), and Tractor Junction now reports an annual run rate of ₹250 crore ($28.2 million). It aims to reach ₹1,000 crore ($113 million) within two years as rural demand for tractors, commercial vehicles, and certified used equipment continues to rise.

Investors highlight Tractor Junction’s ability to merge trust, affordability, and data intelligence across India’s rural markets. “India’s rural economy is central to the future of sustainable food systems,” said Astanor partner Hendrik van Asbroeck. “Tractor Junction has built a trusted and affordable platform for rural mechanisation by combining technology, on-the-ground reach, and fintech innovation.”

Info Edge Ventures partner Kitty Agarwal noted the founders’ “purpose-driven, customer-centric” approach and strong fundamentals, while Omnivore investment director Abhilash Sethi underscored the company’s evolution “from a tractor discovery platform into a comprehensive rural automotive platform.”

With this new round, Tractor Junction is entering a phase of accelerated scale. By pairing technology with local presence and financial inclusion, it is positioning itself as a central force in modernising India’s rural mobility landscape and expanding access to mechanization for farmers who have long been left on the margins of formal markets.