Info Edge’s investment in Gramophone, via its subsidiary Startup Investments (Holding) Ltd, would take up the former’s stake in the agritech startup to 39.5%
Gramophone is also looking to raise additional funds, Info Edge said
Founded in 2016, Gramophone sells seeds, fertilisers, nutrients, pesticides, farming equipment, among others, to farmers directly and through small retailers via an omnichannel model
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Sanjeev Bikchandani-led internet company Info Edge is further increasing its stake in agritech startup Gramophone with an investment of INR 15 Cr (about $1.8 Mn).
In an exchange filing, the company said it would invest in Agstack Technologies Pvt Ltd, the parent of Gramophone, via its wholly-owned subsidiary Startup Investments (Holding) Ltd (SIHL) in two tranches.
While SHIL would disburse INR 7.5 Cr within a month, the remaining amount would be disbursed within 6 months, subject to fulfilment of certain conditions.
“SIHL has agreed to acquire 69,790 compulsorily convertible cumulative preference shares having a face value of INR 10/- each as part of a larger round in two tranches,” the filing said.
Info Edge’s stake in Gramophone, held via SHIL, would increase to 39.5% following the investment.
In addition the company, which is an investor in Zomato and PB Fintech, said that Gramophone is looking to raise additional funds.
Founded in 2016 by Ashish Rajan Singh, Harshit Gupta, Nishant Mahatre, and Tauseef Khan, Gramophone sells seeds, fertilisers, nutrients, pesticides, farming equipment, among others, to farmers directly and through small retailers via an omnichannel model.
The startup has raised a total funding of about $20.5 Mn till date and counts the likes of Z3 Partners, Asha Impact, and Siana Capital among its investors.
Info Edge said Gramophone’s turnover stood at INR 98.5 Cr in the financial year ended March 31, 2024 (FY24).
Info Edge has been an early backer of the startup and has been gradually increasing its stake in it. In January last year, Info Edge said it would invest INR 9.3 Cr in Gramophone to increase its stake to 32.89%.
Besides the investment in the agritech startup, Info Edge’s board, during its meeting on Thursday (May 16), also approved divestment of SIHL’s 34.93% holding in B2B catalogue company Wishbook Infoservices.
“The said investment has already been impaired during FY 2019-20. Further, taking into consideration the independent valuation report, the sale value of the investment is determined as about Rs. 14,112.9/-,” the filing said.
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