Info Edge (India) Ltd has formally confirmed the merger between its agritech portfolio company Gramophone and Unnati Agri, bringing clarity to a deal that had been widely discussed within the startup and investment ecosystem. The confirmation came through a regulatory filing, officially establishing the transaction as a share swap-led consolidation rather than a cash-driven acquisition.
The move signals a decisive step by Info Edge to streamline and strengthen its presence in India’s agritech sector by backing a larger, more integrated platform that brings together complementary business models.
How the Share Swap Will Work
As part of the approved arrangement, Info Edge’s wholly owned subsidiary, Startup Investments (Holding) Ltd, will transfer its entire holding in Agstack Technologies Pvt Ltd, the company behind Gramophone, to Akshamaala Solutions Pvt Ltd, which operates Unnati.
The transfer involves 339,305 shares of Gramophone, representing a 50.94% stake on a fully diluted basis. These shares have been valued at Rs 2,702.87 each, putting the total value of the transaction at Rs 91.7 crore.
In exchange, Unnati will issue 49,145 preference shares to Startup Investments (Holding) Ltd. This will translate into a 15.75% ownership in Unnati on a fully diluted basis immediately after the share swap is completed.
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Additional Investment to Strengthen the Combined Entity
Alongside the share exchange, Info Edge has committed fresh capital to Unnati to reinforce the merged platform. The company will invest Rs 35 crore through a primary infusion by subscribing to 18,756 preference shares in Unnati.
Following this investment, Info Edge’s total stake in Unnati will rise to 20.53% on a fully diluted basis. However, the company has clarified that this holding is expected to dilute to 18.48% once all Gramophone shareholders are issued Unnati shares under the merger structure.
This dilution reflects the broader share issuance that will take place as Gramophone’s existing investors are absorbed into Unnati’s ownership framework.
Expected Timeline and Deal Closure
According to the disclosure, the transaction is expected to be completed within 90 days. The closure will depend on the execution of definitive agreements and the fulfillment of standard conditions that typically apply to transactions of this nature.
Info Edge did not indicate any changes to the agreed valuation, structure, or consideration, suggesting that the deal will proceed as outlined in the filing.
Why the Merger Matters
The merger brings together two agritech companies with distinct but complementary strengths. Unnati has built a business-to-business network focused on agri-input distribution and financing, working closely with retailers and other stakeholders in the agricultural supply chain. Gramophone, in contrast, has developed a farmer-focused digital platform offering crop advisory services and access to agricultural inputs through online channels.
By combining these capabilities, the merged entity aims to create a more end-to-end agritech platform that connects farmers, advisors, distributors, and financiers under one umbrella. The integration is expected to improve reach, operational efficiency, and the overall value proposition for users across the agricultural ecosystem.
Unnati’s Financial Performance
Unnati reported revenue of Rs 291 crore in FY25, reflecting the scale it has achieved in agri-input distribution and related services. During the same financial year, the company posted a loss of Rs 18.4 crore. No updated financial figures for Gramophone were disclosed as part of the announcement.
A Notable Moment for India’s Agritech Sector
The Gramophone–Unnati merger stands out as one of the more significant consolidation moves in India’s agritech space in recent years. It highlights a growing focus on scale, integration, and sustainable business models in a sector that has seen rapid innovation and expansion.
For Info Edge, the deal represents a strategic effort to deepen its involvement in agritech through a stronger, unified platform rather than maintaining separate investments. As the transaction moves toward completion, the merged entity is set to play a more prominent role in shaping how technology supports India’s agricultural value chain.
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