Agri-fintech startup Unnati is set to acquire Gramophone, a digital farm input distribution platform, in a stock-swap transaction that marks a notable consolidation in India’s agritech sector. The deal includes a strategic reshuffle by Info Edge, which will transfer its stake in Gramophone to Unnati and inject fresh capital into the combined entity. The transaction aims to build a more integrated platform by combining Unnati’s financial services with Gramophone’s digital input distribution capabilities.
A Closer Look at the Stock-Swap Deal
As part of the transaction, Info Edge’s wholly owned subsidiary, Startup Investments (Holding) Ltd. (SIHL), will transfer its entire shareholding in Gramophone to Unnati. In return, SIHL will receive a 15.7% fully diluted equity stake in Unnati, effectively converting its exposure from a standalone agritech platform into a minority position in a scaled agri-fintech player.
Ahead of the transfer, SIHL’s stake in Gramophone will rise from 39.58% to 50.94% on an as-if-converted basis, briefly making Gramophone a subsidiary. According to regulatory filings, this adjustment is linked to the valuation mechanics of the exit event. SIHL will subsequently transfer 339,305 shares, representing the full 50.94% stake, to complete the acquisition.
Info Edge Deepens Its Agritech Bet
Beyond the stock-swap, Info Edge will make a primary investment of approximately $3.9 million into Unnati, strengthening the company’s balance sheet as it integrates Gramophone and scales operations. The capital injection signals Info Edge’s continued conviction in the agritech sector and in Unnati’s ability to build a defensible, end-to-end farmer platform.
Following the transaction, Info Edge’s aggregate shareholding in Unnati will rise to around 20.5%, before diluting slightly to approximately 18.5% after shares are issued to other Gramophone shareholders. The deal positions Info Edge as a key minority stakeholder in the enlarged company.
Valuation and Financial Performance
The transaction values Gramophone at approximately $10.2 million, based on a per-share price of roughly $30. For the financial year ending March 2025, Gramophone reported revenues of around $7.4 million, reflecting its growing footprint in digital farm input distribution.
Unnati, founded by former Paytm CFO Amit Sinha, operates at a significantly larger scale. The company reported FY2025 revenues of approximately $32.3 million, while posting a net loss of around $2.0 million, underscoring a growth-first strategy focused on market expansion and platform build-out.
Future Outlook and Market Impact
The acquisition is expected to unlock operational and commercial synergies by combining Unnati’s financing, distribution, and advisory capabilities with Gramophone’s established digital input marketplace. The integrated platform aims to offer farmers a unified solution spanning advisory services, input procurement, and access to credit.
The transaction is expected to close within 90 days, subject to customary conditions. Upon completion, Gramophone will cease to operate as a standalone entity and will be fully absorbed into Unnati’s operations. The deal reflects a broader maturation of India’s agritech ecosystem, where consolidation is increasingly viewed as a path to scale, efficiency, and sustainability.
In summary, Unnati’s acquisition of Gramophone represents a meaningful consolidation move in Indian agritech. Backed by a strategic capital infusion from Info Edge and a clear integration thesis, the merged entity is positioned to build a more comprehensive farmer-focused platform and set a new benchmark for scale in the sector.