When the music pauses: What’s the way forward for Agritech startup Gramophone

“Is Gramophone still operational?” The surprise in Yogesh Dwivedi’s voice was unmistakable. As CEO of Madhya Bharat Consortium of Farmers Producer Company Limited, he knows the agritech landscape better than most. His state-level federation covers Madhya Pradesh and Chhattisgarh, where the agritech startup once held sway.

Gramophone’s promise was straightforward: eliminate middlemen and link farmers directly to seeds, fertilisers and buyers through a full-stack platform. It worked, at least initially. “Yes, there was a time when farmers bought their products (from Gramophone), owing to better prices. They did some good work selling their products to FPOs (Farmer Producer Organisations) in Khargone and Khandwa. However, the company’s operations have been dormant for the past two years. I was under the impression that they shut shop,” said Dwivedi.

Gramophone’s story appears more complex than the shutdown rumours suggest. CEO and Co-founder Tauseef Khan tells a markedly different tale of a company that has found its footing after years of experimentation. He claims the business turned profitable “over the last few months” and grew 70% in the past year while improving gross margins. The company now claims that it employs around 140 people, not the 15 suggested by EPFO filings.

If these numbers hold, then this could be the light at the end of the tunnel that the startup desperately seeks, given that its valuation fell from $40.6 million in January 2023 to $11.8 million by April 2024, according to data from Tracxn.