Info Edge (India) Ltd has approved the consolidation of its agritech portfolio company Gramophone with Unnati Agri, marking a major strategic development in India’s digital agriculture ecosystem. The transaction brings together two complementary agritech platforms and is expected to strengthen scale and integration across the agri-input value chain.
Structure of the Merger
The merger will be executed through Info Edge’s wholly owned subsidiary, Startup Investments (Holding) Ltd (SIHL). As part of the transaction, SIHL will transfer its entire holding in Agstack Technologies Pvt Ltd, the parent company of Gramophone, to Akshamaala Solutions Pvt Ltd (Unnati) via a share swap arrangement.
Under the agreed terms, SIHL will transfer 3,39,305 equity shares, representing a 50.94% stake in Gramophone, at a valuation of ₹2,702.87 per share. The total transaction value stands at approximately ₹91.7 crore. In return, Unnati will issue 49,145 preference shares to SIHL, resulting in a 15.75% ownership stake in Unnati.
Additional Investment and Ownership Impact
Alongside the share swap, Info Edge has also approved a fresh primary investment of ₹35 crore in Unnati. This infusion will be made through the subscription of 18,756 preference shares and will raise Info Edge’s combined shareholding in Unnati to 20.53%.
Following the issuance of Unnati shares to all existing Gramophone shareholders as part of the merger, Info Edge’s effective stake is expected to dilute to around 18.48%.
Strategic Rationale Behind the Consolidation
The merger is designed to integrate Unnati’s B2B agri-input distribution and financing capabilities with Gramophone’s digital advisory and farmer-focused commerce platform. By combining these strengths, the merged entity aims to offer a more comprehensive suite of solutions across the agricultural value chain.
This transaction represents one of the most notable consolidation efforts in India’s agritech sector in recent years and is expected to improve operational efficiency, deepen farmer engagement, and expand market reach.
Financial Snapshot and Timeline
Unnati reported revenue of ₹291 crore in FY25, while recording a net loss of ₹18.4 crore during the same period. The transaction is expected to be completed within 90 days, subject to the execution of definitive agreements and fulfilment of customary regulatory and closing conditions.
Summary
Info Edge’s decision to merge Gramophone with Unnati and commit additional capital underscores its long-term conviction in India’s agritech opportunity. By combining complementary business models and strengthening financial backing, the transaction aims to create a more integrated and scalable agritech platform. While near-term profitability remains a challenge, the consolidation could enhance growth potential and competitive positioning in the evolving digital agriculture landscape.
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