In 2016, it cost a farmer Rs. 2,50,000 to purchase a tractor, while the average annual income of an Indian farmer was Rs. 77,112. In other words, the cost of buying a single tractor was equal to 3 times the annual earnings of an average Indian farmer. Given these constraints, farmers turned to the informal sector, which is mostly devoid of laws and contracts and have been taken advantage of.
Recognizing the magnitude of this problem, Mahindra and Mahindra(M&M) launched a startup called Trringo in 2016, that enables farmers to rent tractors by the hour; which costs Rs. 400-700. Bookings can be made via their app/a call – maximizing inclusivity. Within a year, 100,00 farmers across 1,000 villages had used the service.
What we think made Trringo truly successful is that M&M identified a gap in the market and made a plan to fill up this gap. Trringo established business and also began establishing trust amongst a distressed community.