Poshn, an agritech startup from New Delhi, just raised $4 million in equity and $2 million in debt in a pre-Series A funding round led by Prime Venture Partners and Zephyr Peacock India. The funding will be used to develop more solutions addressing system gaps and expand into Southeast Asian and Middle Eastern countries.
With this round, Poshn claims to have raised $8 million in total equity funding, intending to focus on profitable imports and exports to the mentioned regions for further expansion.
Poshn: Simplifying Wholesale Trading
Founded in 2020 by Shashank Singh and Bhuvnesh Gupta, Poshn offers comprehensive services for wholesale commodities trading. Their tri-party commerce platform enables wholesale buyers to purchase directly from millers and stockists, aiming to streamline the agri-supply chain. Singh mentioned that Poshn has established itself in the wholesale segment over the past three years and plans to aggressively expand into foreign markets with the infusion of fresh equity. Prime Venture Partners, one of the investing partners, highlighted Poshn’s focus on profitability and its efforts to enhance the B2B food value chain. They believe Poshn will redefine its category in the future and are excited to support its growth.
Poshn Growing Strong in India’s Agritech Sector
Poshn, a profitable player in the agritech market, boasts a presence in over 16 Indian states and has seen its revenue increase sixfold from FY22 to FY24. In 2022, it secured $4 million in equity funding in a seed round led by Prime Venture Partners and Zephyr Peacock.
Poshn has partnered with prominent banks and NBFCs like ICICI Bank, Alteria Capital, UCIC, Northern Arc, Blacksoil, and Capsave to meet its debt requirements. Competing against Eeki Foods, AGRIM, Arya.Ag, and WayCool, Poshn aims to streamline India’s fragmented food supply chain market, valued at over $800 billion. Through technological solutions, Poshn seeks to address inefficiencies caused by intermediaries, poor capacity planning, unpredictable demand, and a lack of technology in the chain.
Investments in India’s Agritech Sector
In February this year, Farmtheory, an agritech startup, got $1.45 million in seed funding from Merak Ventures. Last year, Fasal, another agritech startup, raised $12 million in Series A funding led by TDK Ventures and British International Investment (BII). According to Inc42, the Indian agritech sector secured over $2.4 billion in funding across 285 deals from 2014 to February 2024. The Indian agriculture market, valued at $435.9 billion in 2022, is projected to reach $580.82 billion by 2028, growing at a rate of 4.9% annually.
Poshn Transforming India’s Food Supply Chain
Poshn is revolutionizing India’s food supply chain by leveraging technology to simplify and organize it. Both buyers and suppliers are embracing Poshn’s platform for easy access to high-quality products at competitive prices. Mukul Gulati, managing partner at Zephyr Peacock India, expressed excitement about partnering with Poshn’s founders, Shashank and Bhuvnesh. Poshn has developed solutions to streamline the supply chain, including efficient user onboarding, document collection and verification, and ledger matching. In the next phase, the company plans to further integrate forward and backward in the food value chain to enhance efficiencies through capacity planning, utilization, and direct reach to retailers.
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