By Anindita Nayak
Bhubaneswar, 6 May
Agritech startup, Poshn has raised a total of $6 million of capital through a mix of equity and debt, the company said in a press release.
While it secured $4 million in equity, it raised $2 million in debt in a Pre-Series A funding round, led by Prime Venture Partners and Zephyr Peacock India.
This fund will be utilized to expand the distribution network in the food ecosystem and to formulate strategies for expansion in the global markets including Southeast Asia and the Middle East.
“Poshn has already cemented its position in the wholesale segment over the last three years. With the trust of investing partners and infusion of fresh equity, we aggressively integrate forward and backward in the chain and open foreign/export markets over the next 12 months while growing profitably,” cofounder Shashank Singh said.
Poshn, which started operations in 2020 by Singh and Bhuvnesh Gupta, has raised about $8 million in equity so far.
Poshn is a comprehensive food supply chain company addressing effectiveness and efficiency across the entire food value chain approaching food processing units, wholesale buyers, institutions, general trade, and retailers. In the last three years, the company’s revenue has increased six-fold, and it has achieved profitability in EBIDTA terms.
“Poshn is using technology to simplify and organize the fragmented food value chain in India. Both buyers and suppliers are adopting Poshn’s platform for convenient access to quality products at competitive prices. We are excited to partner with Shashank and Bhuvnesh,” said Mukul Gulati, managing partner, Zephyr Peacock India.
Poshn has developed solutions to enhance efficiency in the supply chain, focusing on tasks like user onboarding, document collection and verification, and ledger matching.
The food supply chain market is pegged at $800 billion in India. As this market is highly fragmented, a large number of intermediaries exist, leading to a high level of inefficiency. Inadequate capacity planning due to unpredictable demand and scarcity of technology also creates a crucial issue. Poshn is utilizing technology to address and overcome these gaps.