May 17, 2022
Omnivore Farm Logs | Why we invested in Tractor Junction
Tractor Junction is empowering Indian farmers with access to affordable, high-quality rural vehicles
India has emerged as the world’s largest manufacturer of tractors, and the pace of farm mechanization has grown exponentially in the last fifty years. However, despite fierce competition among manufacturers, farmers who want to buy rural vehicles have to navigate information opacity, unfair pricing, and poor options for buying used machines. Rural vehicle dealers likewise struggle to reach their target customers, appropriately price used vehicles, and liquidate exchange inventory.
What exactly is Tractor Junction building?
Tractor Junction is India’s largest digital marketplace to buy, sell, finance, and insure new and used tractors, farm equipment, and rural commercial vehicles. The startup works with farmers, manufacturing companies, dealers, insurers, and finance companies. For farmers, Tractor Junction provides necessary information and vetted reviews on farm machinery, enables users to compare shortlisted options, and brings transparency to pricing. For manufacturers, dealers and financial service providers, the startup provides access to customers, details of inbound enquiries, and a cost-effective channel for marketing.
How well is Tractor Junction’s approach working?
Based in Noida, Tractor Junction was founded in 2019. Over the last two years, Tractor Junction has experienced 7X growth in annual revenues and has remained operationally profitable. In December 2021, Tractor Junction acquired rival marketplace TractorGuru (the second-largest farm machinery portal), further strengthening its leadership in this space. In the last 12 months, the Tractor Junction portal had over 30 million unique visitors, and the brand has rapidly gained prominence in rural India. The startup has also created over 1 million hours of original content shared across YouTube and other social media. Given the aspirational nature of owning farm vehicles, the content is enjoyed by thousands of subscribers across the country.
What about Tractor Junction was compelling for Omnivore?
To pave the way for a profitable future, accelerating farm mechanization is crucial. It has the power to improve agricultural productivity and farm incomes by saving labour costs, helping farmers better manage valuable inputs, and reducing drudgery in farm operations. That said, tractors and other rural vehicles are investments that farmers have to make despite terrible information asymmetry. With the rapid progress of supporting technologies, the rural vehicle ecosystem is at the cusp of a digital revolution, and Tractor Junction is leading the way. The startup’s digital innovation has the power to improve the financial viability of farm mechanization, especially for small farmers.
What’s next for Tractor Junction?
Tractor Junction plans to use this funding for expanding its team, developing financial services, and launching physical stores for used tractor transactions across northern India.
We are thrilled to welcome Tractor Junction to the Omnivore portfolio. We look forward to working with the team to enhance ease and affordability in farm mechanization in India.
