JM Financial Private Equity invests Rs 40 crore in farm equipment maker Modish Tractoraurkisan

JM Financial Private Equity recently finalized an investment of Rs 40 crore in Modish Tractoraurkisan Pvt. Ltd., known by its brand name Balwaan Krishi. The strategic move marks the sixth investment from JM Financial's Fund III.

The investment aims to bolster Balwaan's brand-building initiatives, enhance marketing efforts, support working capital needs, and expand its distribution network, ensuring sustained growth and leadership in the farm equipment industry.

JM Financial Private Equity is a sector-agnostic growth-capital fund focusing on high-growth, small to mid-market companies. Their portfolio includes investments in diverse sectors such as healthcare, agritech, adtech, and beverages.

What does Modish Tractoraurkisan do?

Modish Tractoraurkisan, established in 2015 by Rohit Bajaj and Shubham Bajaj, operates under the brand Balwaan Krishi.

The company provides India-centric, affordable, small-farm equipment to farmers through an omnichannel presence. Balwaan addresses critical industry challenges such as pre-sales advisory, sale of quality products, post-sales training, and after-sales service and spare support, all under one umbrella.

Leadership comments

Darius Pandole, MD & CEO, Private Equity & Equity AIFs, JM Financial, commented on the investment: “India has been experiencing a steady decline in the average size of farm landholdings, along with increasing labour scarcity and rising labour costs. As a result, the industry is seeing a rise in small farm tools, driven by increasing farmer awareness enabled by internet penetration. Backed by the futuristic outlook of the two young and third-generation entrepreneurs, Balwaan aims to become a leading farm equipment brand in the country.”

Rohit Bajaj, Founder of Modish Tractoraurkisan, stated, “At Balwaan, enhancing farmers’ productivity and cutting their operational costs is at the core of our mission. The capital infusion and partnership with JM Financial Private Equity will accelerate our current and long-term expansion plans."

"In line with Balwaan Krishi’s vision, we aim to integrate innovative technology, expand our reach to a pan-India level, and help farmers reduce operational costs through the adoption of farm machinery over the next few years," Bajaj added.

Purpose of investment

The investment from JM Financial Private Equity will primarily drive Balwaan’s brand-building initiatives and enhance marketing efforts.

Additionally, it will support the company’s working capital needs and expand its distribution network across India. These measures are expected to fortify Balwaan’s position in the farm equipment industry and foster its growth as a leading brand.