Poshn, a prominent participant in the food and agriculture value chain, has expressed its ambition to achieve a sales target of INR 1100 crore in FY24, effectively doubling its current sales figures.
Shashank Singh, Co-Founder of Poshn, said, “This growth will primarily be fueled by the expansion in the supplier base of the categories and doubling down on increasing our geographical footprint. In addition to this, we keep expanding our service offering to SMEs in India.”
The company has set a target to expand its supplier base significantly, aiming to grow from 300 to over 1000 suppliers by 2024. These suppliers primarily specialize in processing food and agro commodities. On the other side, the buyers consist of wholesale purchasers who are interested in acquiring these products. While the company offers a wide range of categories, with groceries and liquid milk being the most prominent, it has clarified that its focus is not on introducing new categories. Instead, the company plans to strengthen and emphasize its existing categories.
Poshn, an agri-trading platform for wholesale processed commodity distribution and financing, was initiated in 2020 as a part-time endeavor by Singh, an IIM graduate, and Bhuvnesh Gupta, an XLRI alumnus. Officially launched in June 2021, the company successfully secured approximately $4.5 million in seed funding from Prime Ventures and Zephyr Peacock.
India is predominantly an agrarian nation, wherein approximately 58% of its populace is engaged in the agriculture sector, contributing around 14% to the country’s Gross Domestic Product (GDP).
According to experts, a substantial market opportunity exists for technology-driven transformation in a conventionally inefficient sector characterized by numerous intermediaries, a lack of credit access, and gaps in supply chain linkage.
“Actually the current atmosphere suits the way we operate. Our constant endeavour to focus on true value adds and our ability to charge for that has kept us pretty robust even in the current environment. We continue to strive to solve for our SME base and create value for all stakeholders,” added Singh.
The company recently launched Poshn Nucleus, a platform aimed at facilitating the matching of a buyer’s procurement demands with the most suitable fulfillment partner. With the massive ecommerce wave over the last decade, there has been a noticeable increase in technology awareness and adoption among SMEs. Taking advantage of this trend, the platform has already onboarded 250 SMEs who are actively using the app.
Read More: Poshn unveils innovative tech platform, set to transform $800 Billion food and agro trading industry