Tractor Junction, India’s leading platform for buying, selling, and financing tractors and other rural vehicles, has successfully raised $22 million in its latest funding round. The round was led by Astanor, a Europe-based impact investment firm making its first investment in India, and was supported by existing investors Info Edge and Omnivore. The fresh capital will empower Tractor Junction to expand its presence across rural India, strengthen its fintech services, and provide easier access to vehicles for farmers.
Tractor Junction has positioned itself as a comprehensive platform for farmers. It allows users to buy or sell tractors and commercial vehicles online while also maintaining a physical presence through stores in rural regions. The company’s fintech arm, FINJ, provides loans to farmers for purchasing used tractors and other vehicles. This combination of technology, physical reach, and financial services has become a unique advantage for the startup, enabling it to solve multiple challenges faced by farmers in rural India.
Driving Growth with Strategic Funding
The $22 million funding round is split between $17 million in equity and $5–5.6 million in debt, bringing Tractor Junction’s total fundraising to approximately $28 million so far. The equity investment allows investors to take a stake in the company, while the debt portion will be repaid over time. This mix provides Tractor Junction with the flexibility to invest in technology, expand operations, and grow its fintech portfolio, all while maintaining a strong financial foundation.
The startup plans to use the funding to expand into new states and towns, strengthen its fintech offerings, and deepen partnerships with vehicle dealers, original equipment manufacturers, and local sellers. Additionally, Tractor Junction aims to enhance both its digital platform and physical stores to create a seamless experience for farmers who prefer visiting outlets in person.
Strong Performance Signals Confidence
Tractor Junction’s growth story has been impressive. In the last financial year, the company reported operating revenue of approximately ₹120.8 crore, almost double compared to the previous year. While losses increased from ₹3.7 crore to ₹9.1 crore due to investment in scaling operations, the overall growth trajectory remains positive. Tractor sales continue to account for the majority of revenue, contributing about 80%, while FINJ has successfully facilitated over ₹1,500 crore in loans through partnerships with 25 banks. Currently, the startup operates 75 physical stores across six states, reinforcing its commitment to bridging the gap between online convenience and offline accessibility for rural customers.
Investors are optimistic about Tractor Junction’s potential. Astanor sees significant value in India’s rural economy and appreciates the startup’s integrated model that combines technology, physical presence, and financial services. The leadership team, comprising Rajat Gupta, Shivani Gupta, and Animesh Agarwal, has demonstrated strong execution and a clear vision, which has helped build investor confidence.
Impact on Farmers and Rural India
For farmers, Tractor Junction’s growth translates into tangible benefits. Accessing quality tractors and commercial vehicles has historically been difficult, and financing options were often limited or expensive. Tractor Junction simplifies this process by providing an all-in-one platform that allows farmers to buy vehicles, obtain loans, and secure insurance easily. This reduces stress and empowers farmers to manage their operations more efficiently, improving productivity and livelihoods in rural areas.
With $22 million in new funding, Tractor Junction is poised to scale its operations further, enhance its fintech solutions, and strengthen its presence across rural India. This move not only reinforces the company’s position in the rural vehicle market but also highlights the increasing importance of technology-driven solutions in transforming the Indian farming ecosystem.