Agri Fintech Startup Unnati to Acquire Info Edge-backed Gramophone in Stock-Swap Deal

Agri fintech startup Unnati is set to acquire Info Edge-backed farm input platform Gramophone through a stock-swap transaction, according to a regulatory filing made on Saturday. The deal will see Info Edge exit Gramophone and take a minority stake in the combined entity.

In the filing, Info Edge said its wholly owned subsidiary, Startup Investments (Holding) Ltd. (SIHL), will transfer its entire holding in Gramophone to Unnati. In exchange, SIHL will receive a 15.7 percent equity stake in Unnati on a fully diluted basis.

Info Edge will also make a primary investment of INR 35 crore in Unnati, taking its aggregate shareholding to around 20.5 percent, which will later dilute to about 18.48 percent after shares are issued to other Gramophone shareholders.

Founded in 2010, Gramophone operates a digital platform focused on the distribution of agricultural inputs. The company reported revenue of about INR 67 crore in the financial year ended March 2025.

Unnati, founded by former Paytm Chief Financial Officer Amit Sinha, provides financing and distribution services related to farm inputs. For the same financial year, Unnati reported revenue of INR 291 crore and a loss of INR 18 crore.

SIHL currently holds 39.58 percent in Gramophone. This stake will rise to 50.94 percent on an 'as-if converted' basis before the transfer, temporarily making Gramophone a subsidiary of SIHL. Explaining this, Info Edge said, "The increase in stake from 39.58% to 50.94% in Gramophone is on account of the valuation at which the 'exit event' is being undertaken by Gramophone."

The transaction values Gramophone at around INR 92 crore, based on a per-share price of approximately INR 2,703. SIHL will transfer 3,39,305 shares, representing 50.94 percent of Gramophone on a fully diluted basis, to Unnati. The deal is expected to be completed within 90 days, subject to customary approvals.

Following the transaction and the proposed merger of Gramophone into Unnati, Gramophone will cease to be a subsidiary of SIHL with Info Edge holding a minority stake in the merged entity.