The Pre-Series A investment round for agritech startup Meratractor garnered Rs 5 crore, increasing the total amount raised to Rs 7.25 crore after this round.
Mr. Vibhor Sahare, CEO and co-founder of ANS Commerce and former CEO and co-founder of Gaadi.com, Real-Time Angel Fund, and Digital Futuristic Angels Network, led the investment round. The recently collected money will be used to expand the dealership network’s footprint and improve supply chain organisation technologies.
“We liked the holistic ecosystem approach that the MeraTractor team is using to solve structural issues in the used tractor space. It’s a unique niche within the broader agri-tech space that can have a substantial impact in democratising tractor ownership” said the lead investors.
MeraTractor is working to develop a complete ecosystem so that it may serve as a one-stop shop for all parties involved in the farm mechanisation industry. Despite having little assets, the dealer-owned and company-operated business model, which controls the whole transaction, offers farmers, dealers, lenders, and new tractor OEMs a viable business strategy. The dealership network of this company is based in rural areas, which will eventually serve as its entryway to all rural business prospects relating to the agriculture industry.
Commenting on the problem that the start-up is trying to solve, Sajith Abraham, Co-founder, MeraTractor, said, “There has been significant work in crop cultivation, in ensuring better yield, farm-gate solutions and a push from the government to improve farmer income. However, farm mechanization for Indian farmers, of which over 85% are smallholders, has been vastly missed out because of purchase capabilities. This creates challenges starting from discovery, financing facilities, and other key milestones in the process, making it difficult for an unassuming farmer. As a solution, MeraTractor is looking at bridging the gap between a smallholder farmer and access to farm mechanization / financial products”.
Highlighting the opportunities that lay ahead, Monak Gohel, Co-founder, MeraTractor, said, “The farm mechanization sector is on the verge of massive disruption and has created an environment for innovation that will help start-ups like MeraTractor address the inefficiencies in the sector. We believe farm power is an essential input in agriculture; hence, we are excited about the fundraise as it will help us to accelerate our journey in growing the network further by tapping into massive rural business opportunities that lie ahead”.
In order to assist dealers (rural business owners in Tier 3 to Tier 6 Locations) in selling agricultural mechanisation equipment to small and marginal farmers, the start-up aspires to become a cutting-edge manufacturer. Its business strategy is based on developing a whole ecosystem that combines the physical and digital worlds; as a result, it is known as a “phygital network.” The network was developed to assist partner dealers with everything from tractor supply to demand development to tractor sales, name transfer paperwork, enlisting banking partners for tractor loans, and much more. By adding value at each transaction point, the business generates income.
