Meeting up with founder of TractorFactory.in

10L pre-owned tractors 🚜 are sold in India every year which is almost the same as the number of new tractors sold. 🤯

This makes it a $5bn market at an average sales price of ~Rs. 4.2 lakh per pre-owned tractor.

I never thought the pre-owned tractor market was so big in India until I met Shailesh a few days back.

Shailesh is building TractorFactory.in which is taking away uncertainty and risk out of buying a pre-owned Tractor, by building a trusted platform for refurbished tractors. Thereby offering peace of mind and better IRR for farmers.

That conversation with Shailesh left me with tons of insights.

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🔆 86% of India’s farmers are small and marginal farmers with land holdings below two hectares. They can’t really afford an expensive new tractor for their farm.

🔆 Bigger farmers change their tractors every 2-3 years which brings a lot of supply in the pre-owned market for poor farmers.

🔆 Steep inflation in the new tractor prices have played a pivotal role in increased demand for pre-owned tractors in the last 3-4 years.

🔆 Almost the entire supply of pre-owned tractors are currently sold without proper refurbishment and checks making the buyer vulnerable to uncertainty and risk of poor quality tractor.

🔆 Surprisingly, the delinquency rate for loans for pre-owned tractors is 1/10th of a new tractor because of lower ticket size and better IRR of a pre-owned tractor.

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Great meeting you, Shailesh Tiwari. Wish you all the best.

Misfits like you will change the world! #CelebratingMisfits