Poshn, a pioneering food-tech startup dedicated to streamlining the fragmented food supply chain, has secured $4 million in equity and $2 million in debt during a pre-series A funding round. Led by Prime Venture Partners and Zephyr Peacock India, this investment will empower Poshn to establish the most extensive distribution network within the food ecosystem.
With this latest funding round, the company founded by Shashank Singh and Bhuvnesh Gupta has raised approximately $8 million in equity since its inception in 2020.
Poshn operates as a comprehensive food-tech supply chain company, adopting an integrated strategy to enhance effectiveness and efficiency across the entire food value chain. This approach encompasses various phases, including food processing units, wholesale buyers, institutions, general trade, and retailers.
The startup plans to utilize the fresh funds to further develop its innovative stack of solutions, addressing the existing gaps in the system. Additionally, it intends to expand its business to global markets, engaging in import/export activities focused on profitable categories in Southeast Asian and Middle Eastern countries.
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Regarding the latest funding round, Shashank Singh, Co-Founder of Poshn, remarked, “Poshn has solidified its presence in the wholesale segment over the past three years. With the support of our investing partners and the injection of fresh equity, we are strategically advancing both forward and backward in the chain. Our aim is to penetrate foreign/export markets aggressively within the next 12 months, all while maintaining profitable growth.”
Over the last three years, Poshn has achieved remarkable growth, maintaining profitability along the way. The company’s revenue has surged six-fold from FY22 to FY24. Poshn stands out as one of the few startups that have achieved EBITDA profitability while sustaining a strong growth trajectory. Since its inception, the startup has established a presence in more than 16 states across India. In 2022, it secured $4 million in equity during a seed round led by Prime Venture Partner and Zephyr Peacock. Furthermore, Poshn has formed partnerships with Banks & NBFCs to fulfill its debt requirements, with notable collaborators including ICICI Bank, Alteria Capital, UCIC, Northern Arc, Blacksoil, and Capsave.
Prime Venture Partners commented, “Poshn has emerged as a trailblazer in prioritizing the supply aspect, effectively addressing the B2B food value chain. With a consistent focus on the bottom line, the company has achieved impressive returns on capital employed (ROCE). Poshn aims to deepen its presence in the supply chain and explore full-stack vertical integrations to enhance its offerings further. We anticipate Poshn to become a benchmark company in its category in the forthcoming years, and we are thrilled to have been their partners from the outset.”
Throughout its journey, Poshn has developed solutions aimed at enhancing efficiency in the supply chain, encompassing user onboarding, document collection and verification, and ledger matching. In the upcoming phase, the company will pursue integration both forward and backward in the food value chain to unlock additional efficiencies. This includes capacity planning, utilization optimization, and establishing direct connections with retailers.
Bhuvnesh Gupta, Co-Founder, remarked, “Poshn prides itself on maintaining the highest levels of operational and capital efficiency, not only within the food tech domain but also across various B2B segments. With the infusion of fresh capital and trust, we are poised to explore new horizons while upholding our commitment to efficiency.”
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The food supply chain market is valued at over USD 800 billion and is highly fragmented on the supply side. This fragmentation leads to inefficiencies caused by numerous intermediaries or middlemen, inadequate capacity planning, unpredictable demand, and a lack of technological integration. Poshn is committed to bridging these gaps through innovative technology solutions.
“Poshn uses technology to streamline & organise India’s fragmented food value chain. Poshn’s platform is popular among both buyers and sellers because it provides easy access to high-quality products at cheap costs. “We are delighted to collaborate with Shashank & Bhuvnesh,” said Mukul Gulati, Managing Partner of Zephyr Peacock India.