M&M – Mahindra group had announced its ecommerce startup for the agricultural equipment rental services called Trringo. They are planning for a venture of around Rs 10 crore once it expands the business model.
This ecommerce start up will connect the farmers looking to rent farm equipment either through an app or a call. Trringo will operate on a franchise and aggregator-based business model, according to Rajesh Jejurikar, president and chief executive, farm equipment and two wheelers, Mahindra and Mahindra. “Trringo will provide the brand promise of equipment availability, commitment and performance to transform lives of farmers,” he said. The firm will appoint franchises in regional rural hubs, which will buy new farm equipment as well as aggregate the existing equipment for rents.
“The model will be brand agnostic, and will aggregate other brands of farm equipment as per requirements,” Mr Jejurikar said. He also said the relationship between Trringo and the franchise will be a fixed fee plus a variable commission. “The rental transactions between the farmer and the franchise are not connected with the company. The company will get a fixed fee from franchise and a variable commission based on usage of products,” Mr Jejurikar added.
The group said this is an attempt to improve the penetration of farm mechanisation, which is currently at 35 per cent. The tractor and equipment market is estimated at Rs 15,000 crore annually, with most it in the unorganised sector. The firm will commence operations in June 2016 and scale up to Maharashtra, Karnataka, Gujarat, Madhya Pradesh and Rajasthan by August 2016.
“In our country where farm mechanisation penetration is low, Mahindra would like to play a significant role in enabling our farmers to improve their productivity by providing technology,” Pawan Goenka, executive director, Mahindra and Mahindra Ltd said.