Unnati Acquires Gramophone: A Significant Move in Agri Fintech
In a strategic development within the agri fintech sector, Unnati is set to acquire Gramophone, an agricultural input platform supported by Info Edge. This acquisition will be executed through a share swap transaction, marking a pivotal moment for both companies as they aim to leverage their strengths in the agricultural market.
Details of the Acquisition
The acquisition was announced via a regulatory filing on Saturday. The agreement allows Info Edge to exit its stake in Gramophone while simultaneously taking a minority position in the newly merged entity. As part of the transaction, Info Edge’s wholly-owned subsidiary, Startup Investments (Holding) Ltd. (SIHL), will transfer its entire stake in Gramophone to Unnati. In return, SIHL will obtain a 15.7% stake in Unnati on a fully diluted basis.
Investment Plans from Info Edge
In addition to the share swap, Info Edge is set to make a significant investment of INR 35 crore in Unnati, which will increase its overall stake to approximately 20.5%. This stake will eventually dilute to around 18.48% following the distribution of shares to other shareholders of Gramophone.
About Gramophone
Founded in 2010, Gramophone has established itself as a digital platform dedicated to the distribution of agricultural inputs. The platform has shown impressive growth, reporting a turnover of approximately INR 67 crore for the financial year ending in March 2025. This acquisition is expected to further enhance Gramophone’s operational capabilities and market reach.
Understanding Unnati’s Role
Founded by Amit Sinha, the former CFO of Paytm, Unnati specializes in providing comprehensive financing and distribution services in relation to agricultural inputs. For the same financial year, Unnati achieved a turnover of INR 291 crore, though it reported a loss of INR 18 crore. The merger is anticipated to help Unnati strengthen its offerings and expand its footprint in the agri fintech space.
Ownership Structure Changes
Currently, SIHL holds a 39.58% stake in Gramophone, which will increase to 50.94% on an “as if converted” basis prior to the transfer, temporarily making Gramophone a subsidiary of SIHL. This stake adjustment has been attributed to the valuation at which the exit event is undertaken by Gramophone, as explained by Info Edge.
Valuation and Future Outlook
The transaction values Gramophone at approximately INR 92 crore, based on a share price of around INR 2,703. SIHL will be transferring 339,305 shares, representing 50.94% of Gramophone on a fully diluted basis, to Unnati. The deal is expected to be finalized within the next 90 days, pending customary approvals.
Upon completion of the merger, Gramophone will no longer be a subsidiary of SIHL, and Info Edge will maintain a minority stake in the merged entity. This strategic acquisition highlights the growing importance of technological integration in agriculture and positions both Unnati and Gramophone for a promising future in the agri fintech landscape.