Agritech startup Unnati is buying Gramophone, an agritech platform backed by Info Edge. The deal is happening through a stock-swap, which means no cash is being paid — instead, company shares are being exchanged.
In a stock exchange filing on Saturday, Info Edge said that its wholly owned subsidiary, Startup Investments (Holding) Ltd (SIHL), will transfer its entire stake in Gramophone to Unnati. In exchange, SIHL will receive a 15.7% equity stake in Unnati on a fully diluted basis.
Info Edge will also invest INR 35 crore directly in Unnati. After this investment, Info Edge’s total ownership in Unnati will rise to about 20.5%. Later, when new shares are issued to other Gramophone shareholders, this stake will be reduced to 18.48%.
At present, SIHL owns 39.58% of Gramophone. Before transferring its stake to Unnati, this holding will increase to 50.94%, which will temporarily make Gramophone a subsidiary of SIHL.
“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,” Info Edge said in the filing.
Founded in 2010, Gramophone runs a digital platform that helps distribute farm products and agricultural inputs to farmers. For the financial year ending March 2025, the company reported a revenue of around ₹67 crore.
Amit Sinha, former CFO of Paytm, founded Unnati. It provides financing and distribution services for agricultural inputs, helping farmers access products and credit more easily.
For the same financial year, Unnati reported a revenue of ₹291 crore, but it also recorded a loss of INR 18 crore.
The deal values Gramophone at around INR 92 crore, based on a share price of about ₹2,703 per share. SIHL will transfer 3,39,305 shares, which represent 50.94% ownership of Gramophone, to Unnati.
The deal is expected to be completed within 90 days, after meeting standard legal and regulatory conditions.
After the transaction and the planned merger of Gramophone into Unnati, Gramophone will no longer be a subsidiary of SIHL. Info Edge will then hold only a minority stake in the combined company.
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