Rajat Gupta, Founder & CEO of Tractor Junction, told CNBC-TV18 that the company’s expansion plans are rooted in the model it built over the past six years. “We started as a tractor content discovery platform back in 2018 from Alwar, Rajasthan,” he said, adding that the platform grew by solving deep information and pricing gaps in India’s fragmented tractor market. Gupta said the business evolved from a purely digital model to a hybrid one, with 70 company-owned, company-operated (COCO) outlets now active across Rajasthan, Madhya Pradesh and Maharashtra, selling around 300–350 used tractors a month.
With the fresh capital, Tractor Junction plans to accelerate all three of its business streams—platform, commerce and finance. Gupta said the company will channel nearly ₹50 crore into expanding its offline presence. The target is to scale from the current network to almost 250 COCO centres over the next 18–24 months. The company is also expanding its geographic footprint, aiming to move from 12 states to 18 states and double penetration in existing markets.
A similar amount will be deployed towards building out the platform and strengthening its technology stack. “We are building an AI-led platform so that farmers get the right research based on their application and can choose the right tractor,” Gupta said. The company, which commands about 60% of digital traffic in the tractor and truck categories, currently serves more than 70 lakh farmers online every month.
The fintech vertical will also see significant investment as Tractor Junction looks to scale FinJ, its lending arm launched in January 2024. The vertical has already disbursed over ₹1,500 crore so far, including ₹330 crore in its first year. The company now plans to disburse about ₹1,700 crore this year and triple that annually over the next two years. Gupta expects FinJ’s loan disbursals to reach ₹5,000 crore next year and potentially ₹10,000 crore thereafter.
He said the fintech business emerged from a critical gap identified at the ground level. “Almost 70% of sales happen through financing,” Gupta said. “Farmers and small customers are hardly able to get funds for used-vehicle purchases.” Tractor Junction’s expertise in valuing used tractors has now become its competitive advantage, as lenders rely on its pricing capabilities to underwrite loans accurately. “We buy thousands of tractors quarterly, and because we value them, these valuations are used by lenders,” he said.
The company, which has grown revenues 13x in the last three years, expects to close FY26 with ₹225–250 crore in revenue despite a temporary slowdown in used-vehicle demand following changes in GST norms. Gupta believes the commerce and fintech businesses will drive the next phase of growth, supported by the platform’s expanding reach and the company’s widening offline footprint.
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