Agritech firm Poshn raises $4 million in funding led by Prime Ventures Partners, Zephyr Peacock

Agritech company Poshn said it has 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 startup plans to use the funds to build its innovative stack of solutions that address the gaps in the system. It also aims to expand its business to global markets with imports and exports in profitable categories to 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.

Founded by Singh and Bhuvnesh Gupta in 2020, Poshn has raised around $8 million in equity since its inception including the latest funding.

Poshn is a full-stack food supply chain company taking an integrated approach to solving effectiveness and efficiency in the entire food value chain in phases that include food processing units, wholesale buyers, institutions, general trade, and retailers. Over the past three years, the company's revenue has surged six-fold and it is Ebitda profitable.

The firm operates in more than 16 states in India. In 2022, it raised $4 million in equity in a seed round with Prime Venture Partners and Zephyr Peacock. Additionally, it has partnered with banks and NBFCs for its debt requirements. Some names include ICICI Bank, Alteria Capital, UCIC, Northern Arc, Blacksoil, and Capsave.

“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 built solutions to make the supply chain efficient for user onboarding, document collection and verification, and ledger matching. In the next phase, the company will integrate forward and backward in the food value chain to unlock further efficiencies via capacity planning, utilisations, and reaching directly to retailers.

The food supply chain market is over $800 billion and is highly fragmented on the supply side. The chain experiences inefficiencies due to a slew of intermediaries or middlemen, poor capacity planning, a lack of predictable demand, and a lack of technology. Poshn is working on bridging these gaps with technology.