Unnati Agri: Major Acquisition of Gramophone

Unnati Agri is on the brink of acquiring its industry counterpart, Gramophone, in a share swap transaction, as per two sources aware of the situation. If realised, this agreement will forge one of the largest agri-input enterprises in India. A source, preferring to remain anonymous, stated that the merger between Unnati and Gramophone would lead to substantial consolidation in the agri-input sector, which presently features only a few main players.

Details of the Acquisition Structure

According to sources, this share swap arrangement is anticipated to reflect the revenue contributions and operational scale of both companies. Agri inputs encompass products like seeds, fertilizers, and pesticides, provided to farmers or retailers to bolster crop production. Conversely, agri output businesses focus on assisting farmers in vending their harvested goods, such as grains, fruits, and vegetables, to buyers or markets.

It is anticipated that Gramophone will possess approximately 30–35% share in the newly formed organisation, with Unnati maintaining the majority ownership. The earlier quoted source mentioned that this arrangement is likely to function more as a merger instead of a traditional acquisition, allowing both firms to maintain independent operations.

Unnati’s Recent Business Focus

Over the past year, Unnati dedicated its efforts to consolidating its brand after reducing third-party activities. Presently, it operates with profit margins of 30–35% and has witnessed an enhancement in its bottom line for FY25, despite flat revenue. Another anonymous source noted that Unnati’s brand-focused model is yielding better margins, with its input annual recurring revenue (ARR) reaching around Rs 375 crore for FY26.

Financial Insights

As per Startup Superb, Unnati Agri reported revenues exceeding Rs 500 crore in FY24, although its losses slightly widened. InfoEdge-supported Gramophone previously concentrated on its output segment but discontinued it due to unprofitable margins. Shifting its attention to inputs has enabled a successful turnaround in FY25, with a significant growth in its own branded input products.

For context, Gramophone’s gross merchandise value (GMV) decreased to Rs 98 crore in FY24 from Rs 316 crore in FY23, following the reduction of its output operations. Sources indicate that the company’s growth is expected to remain stable in FY25; however, it is currently achieving an ARR run rate of Rs 150 crore for FY26.

Geographic Presence and Future Plans

Gramophone maintains a strong foothold in Rajasthan and Madhya Pradesh, while Unnati operates in Haryana, Maharashtra, Telangana, and Uttar Pradesh. The merger would enable an expansion of their geographical reach and integrate Unnati’s B2B strengths with Gramophone’s direct-to-farmer B2C network. The initial source pointed out that their operational synergies align both geographically and functionally.

After the merger, the combined entity intends to secure a larger funding round and consider joint acquisition opportunities, according to insiders. Detailed inquiries sent to Unnati and Gramophone on Monday have not yet received a response. Updates will be provided if they reply.

Funding Background

Founded in 2017 by Amit Sinha, the former Paytm Mall COO, and Ashok Prasad, Unnati Agri has amassed over $11 million in funding from Incofin Investment Management, Orios, and others. In contrast, Gramophone has raised more than $20 million to date, including a $10 million Series B round led by Z3 Partners. According to startup data intelligence from various sources, Info Edge stands as the largest external stakeholder with 32.89%, followed by Z3 Partners and Siana Capital.