Gramophone
- Ashu Sikri (Unlicensed)
Notes from call w Ram on Apr 12
“Provides agronomy services and input and output products in Madhya Pradesh, Chattisgarh, Maharashtra, and Rajasthan by way of an ecommerce marketplace” (eg, a mini DeHaat)
With soybean farmers, Gramophone sells inputs and helps farmers link with local processors for offtake; also provide free agronomic services
I asked what sort of data Gramophone’s lending partners want to see to either provide credit or improve terms for farmers: sales/ transaction history and land ownership records
Ram is leading an initiative to integrate financing to the various actors Gramophone works with:
Input finance for farmers
Gramophone currently does cash on delivery for its ecommerce input sales; wants to brings on finance partners who can provide 4-6 month loans.
In discussion with Jai Kisan who will offer loans of 5k for farmers w no credit history and 10k for farmers who do have some credit history
Pricing is 2-2.5% per month and a 2% processing fee so 10% over 4 months
For soybean farmers, 5K (~$65) is enough for the first first spray and some seeds; covers input needs for the season for one acre
Input retailers: Today, retailers get 2 month loans from wholesalers and Gramophone wants to match this (they currently sell cash on delivery)
Output / aggregation finance:
Gramophone doesn’t work w FPOs today, buys from traders or direct from farmers
Their ecommerce SKUs cover all items except fertilizer (farmers go to govt subsidized shops, no product differentiation)