Tractor Junction Raises USD 22.6 Million to Strengthen Used Vehicle and Fintech Services

Tractor Junction, one of India’s fastest-growing rural auto-fintech platforms, has announced that it has raised USD 22.6 million (INR 200 crore) in its Series A funding round. The investment was led by Europe-based impact fund Astanor, marking its first-ever entry into the Indian market. In addition, existing investors Info Edge and Omnivore also took part in the round.

Mix of Equity and Debt to Support Expansion

The funding includes USD 17 million (INR 150 crore) in equity and another USD 5.6 million in debt. This gives Tractor Junction a strong financial boost to expand its operations. With this fresh capital, the company aims to upgrade its digital tools, increase its on-ground reach, and improve its financial services for rural users.

In addition, the new support will help the company bring more farmers into the formal credit system, which often remains out of reach for small and marginal farmers. Many farmers still rely on informal lenders due to limited access to organised financial services. Tractor Junction now hopes to change that landscape with stronger and more affordable solutions.

Building an Accessible Ecosystem for Rural Mobility

Tractor Junction was founded in 2018 and has steadily built a full-stack platform that connects technology, physical stores, and financial innovation. Over the last three years, its revenue has grown 13 times, showing the rising demand for reliable rural mobility and credit.

Moreover, the company has become one of the largest digital hubs for rural vehicle needs, reaching over 6 crore yearly visitors and partnering with more than 50 OEMs. Its network of COCO stores now covers 75 cities across 6 states, helping farmers buy, sell, finance, and insure used tractors and other commercial vehicles with ease.

Strong Push for Affordable Rural Credit

Perhaps the most notable development is the success of FINJ, Tractor Junction’s fintech arm. Launched in early 2024, FINJ has already helped disburse over INR 1,500 crore in loans through partnerships with 25 lending institutions.

By using technology-driven underwriting, the platform offers farmers access to loans at rates that can be up to 30% lower than those provided by unorganised financiers. This shift not only eases financial pressure on farmers but also supports long-term rural economic growth.

Rajat Gupta, CEO & Founder of Tractor Junction, said:

“For far too long, farmers have been locked out of formal finance and quality vehicle ownership. Through Tractor Junction and FINJ, we’re changing that narrative by combining data, technology, and on-ground presence. This has allowed us to bring more than 30,000 farmers into the foray of mechanization over the last 2 years. 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.”

Hendrik van Asbroeck, Partner at Astanor commented:

"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."

About Tractor Junction

Founded in 2018 by Rajat Gupta, Shivani Gupta, and Animesh Agarwal, Tractor Junction has developed a complete ecosystem for rural mobility in India. It brings together technology, physical network support, and financial solutions to make farm mechanisation easier and more affordable for farmers. The company has also received early backing from investors like Rockstart, AgFunder, and Indigram Labs.

About Astanor

Astanor is a global impact investment firm that supports businesses from seed stage to growth stage across the agriculture and food sectors. Since its founding in 2017, the firm has made around 50 investments in Europe, North America, and other regions. Its goal is to back forward-thinking entrepreneurs and teams who are creating scalable solutions for regenerative farming, sustainable food production, and stronger supply chains. More details can be found at Astanor.