Gramophone–Unnati Merger: Strengthening India’s Agri-Tech Ecosystem

Gramophone–Unnati Merger: Reshaping India’s Agri-Tech and Fintech Ecosystem

NEW DELHI / INDORE – In a move set to redefine the digital agricultural landscape in India, agritech platforms Gramophone and Unnati Agri have officially entered into a definitive merger agreement. The consolidation, confirmed by lead investor Info Edge (India) Ltd on January 3, 2026, marks one of the largest strategic restructurings in the sector, aimed at building a full-stack platform for India’s 140 million farmers.

The Deal Structure

The transaction is structured as a share-swap merger led by Info Edge’s subsidiary, Startup Investments (Holding) Limited (SIHL).

• Stake Transfer: SIHL is transferring its entire 50.94% stake in Gramophone to Unnati at a valuation of approximately ₹91.71 crore.

• Fresh Capital: Alongside the merger, Info Edge is infusing an additional ₹35 crore in primary capital into Unnati.

• Final Ownership: Upon completion, Info Edge will hold an aggregate 20.53% stake in the combined entity, which is expected to settle at 18.48% after all Gramophone shareholders are onboarded.

Strategic Synergies: B2B meets B2C

The merger creates a formidable entity by combining the specialized strengths of both companies:

1. Unnati’s B2B and Fintech Prowess: Based in Noida, Unnati has built a robust network in Haryana, Maharashtra, and Uttar Pradesh, focusing on agri-input distribution and credit services for retailers.

2. Gramophone’s Farmer-Centric Advisory: Headquartered in Indore, Gramophone excels in the B2C segment, providing "crop-to-consumer" advisory and input commerce to farmers in Madhya Pradesh and Rajasthan.

Why the Consolidation Matters

The Indian agritech space has recently moved away from "growth-at-all-costs" toward sustainable, margin-focused models. Both firms recently pivoted to prioritize their own-brand agri-inputs:

• Unnati reported a turnover of ₹291 crore in FY25, leveraging high-margin fintech and distribution services.

• Gramophone successfully turned around its operations in FY25 after exiting the low-margin output (crop-selling) business, reaching a revenue run rate of ₹150 crore for FY26.

Leadership Perspectives

While both brands are expected to continue operating independently in the near term to maintain farmer trust, the backend integration will streamline supply chains and lower customer acquisition costs.

"This merger is about scale and sustainability," noted an industry analyst. "By combining Gramophone’s advisory-led farmer engagement with Unnati’s sophisticated financing and B2B reach, the entity is now positioned to compete with global agri-conglomerates entering the digital space."

What’s Next?

The transaction is expected to close within the next 90 days, subject to customary closing conditions. Post-merger, the joint entity plans to raise a larger Series C funding round to expand its footprint into Southern India and explore further acquisitions of niche agritech startups.

Key Data Points