Agritech startup Unnati is set to acquire rival Gramophone, a move that will see Info Edge divest its stake in Gramophone for a significant shareholding in Unnati. Info Edge plans a substantial cash infusion into Unnati post-acquisition, aiming to consolidate its position in the evolving agri-tech sector.
Unnati to Acquire Gramophone in Strategic Merger
Agritech startup Unnati is poised to acquire its peer, Gramophone, in a significant consolidation move for the sector. The transaction involves a complex stake swap and cash investment, with Info Edge playing a central role as a key investor in both entities.
Info Edge, through its subsidiary Startup Investments (Holding) Ltd, currently holds a 39.58% stake in Gramophone. As part of the acquisition deal, Info Edge's stake in Gramophone is set to increase to 50.94% before it sells its entire holding to Unnati. This strategic divestment will yield Info Edge a 15.7% stake in the acquiring company, Unnati.
Further bolstering its position, Info Edge intends to invest INR 35 crore in Unnati following the acquisition. This injection of capital is expected to raise Info Edge's stake to 20.53%. The company noted this shareholding may dilute to approximately 18.48% once all Gramophone shareholders are integrated into Unnati's cap table, facilitating the complete merger.
The deal values Gramophone's 3.39 lakh shares at INR 91.7 crore. In return, Info Edge will receive 49.1K shares of Unnati, with each share valued at INR 18,661. The additional INR 35 crore investment translates to the purchase of 18,756 more shares.
Gramophone, founded in 2016 by Tauseef Khan and Nishant Mahatre, operates an omnichannel model selling seeds, fertilizers, farming equipment, and other inputs directly to farmers and through retailers. The company reported a turnover of INR 66.8 crore in FY25, a significant decrease from INR 99 crore in the previous fiscal year.
Unnati, co-founded by former Paytm CFO Amit Sinha, provides a digital platform for agri-input retailers. It posted a robust 30% revenue jump to INR 515 crore in FY24, up from INR 397 crore in FY23. However, its losses also widened by 27% to INR 469 crore during the same period.
The combined entity aims to leverage the strengths of both startups to establish a comprehensive, full-stack agri-tech platform. This merger signifies a strategic consolidation, anticipating greater efficiency and market reach in India's rapidly expanding agricultural technology landscape.
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