Tractor Junction raises $22.5M in funding led by Astanor

Tractor Junction, a digital platform for rural vehicles and mobility solutions, has raised $22.5 million (Rs 200 crore) in a new funding round led by Astanor, a Europe-based impact fund making its first investment in India. The round, which includes $17 million in equity and $5.5 million in debt, saw participation from existing investors Info Edge and Omnivore.

The company said it will use the capital to expand its digital and physical presence, strengthen its refurbishment and certification network, and enhance its fintech capabilities to improve access to vehicles and credit for farmers.

The new funding is expected to support Tractor Junction’s efforts to expand access to mechanisation and institutional finance in rural markets.

Founded in 2018 by Rajat Gupta, Shivani Gupta, and Animesh Agarwal, Tractor Junction offers a full-stack ecosystem for rural mobility, combining technology, physical infrastructure, and financing solutions. The company reports 13-fold growth over the past three years and operates company-owned stores in 75 cities across six states, supported by partnerships with more than 50 OEMs and over 1,000 dealers.

“This investment allows us to accelerate financial inclusion and reduce the cost of rural credit,” said Rajat Gupta, CEO and Founder of Tractor Junction. He added that Astanor’s decision to enter India through this investment and the continued support of existing investors reflect confidence in the company’s approach.

According to the compnay, it has connected with over 200 million farmers, providing a platform to buy, sell, finance, and insure used tractors and commercial vehicles. Its lending arm FINJ, launched in January 2024, has disbursed more than Rs 1,500 crore in loans through 25 lending partners.The company said its data-led underwriting helps farmers access credit at interest rates up to 30% lower than informal sources.