Poshn, an innovative food-tech startup on a mission to simplify the unorganized food supply chain, has announced that it has raised USD 4 million in equity and USD 2 million in debt in a pre-series A funding round held recently. The funding led by Prime venture partners and Zephyr Peacock India will help Poshn create the largest distribution network in the food ecosystem.<\/p>\n
With that, the company founded by\u00a0 Shashank Singh and Bhuvnesh Gupta has raised around $8 million in equity since its inception in 2020.\u00a0<\/p>\n
Poshn is a full-stack food-tech 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.<\/p>\n
Poshn plans to use the fresh funds to build further its innovative stack of solutions that address the gaps in the system. Besides, it will use the funds to expand the business to global markets with imports\/ exports in profitable categories to Southeast Asian and Middle Eastern countries.<\/p>\n
On the new funding round, Shashank Singh, Co-founder of Poshn, said, \u201cPoshn 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.\u201d<\/p>\n
Over the past three years, Poshn has experienced remarkable growth while maintaining profitability. The company\u2019s revenue has skyrocketed six-fold from FY22 to FY24. Poshn is one of the few startups that have been EBITDA profitable while supporting the growth trajectory. Since its inception, the startup has marked a presence in more than 16 states in India. In 2022, the startup raised\u00a0 USD 4 million in equity in a seed round with Prime Venture Partner and Zephyr Peacock. Additionally, it has partnered with Banks & NBFCs for its debt requirements. Some notable names include ICICI Bank, Alteria Capital, UCIC, Northern Arc, Blacksoil, and Capsave.<\/p>\n
Prime Venture Partners added,\u201d Poshn has led by being a supply-first company and has meaningfully solved for the B2B food value chain. The company has always been bottom-line focused with a remarkable ROCE and wants to continue expanding that further by going deeper into the supply chain while also pursuing some full-stack vertical integrations. We believe Poshn will be a category-defining company in the coming years, and we are excited to be their partners from day zero.\u201d<\/p>\n
In its journey, 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, utilizations, and reaching directly to retailers.<\/p>\n
Bhuvnesh Gupta, Co-founder, said, \u201cPoshn boasts of best operational and capital efficiency in not just food tech but across B2B segments. With renewed capital and trust, we will continue to scale newer horizons with the same efficiency.\u201d<\/p>\n
The food supply chain market is over USD 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.<\/p>\n
\u00a0\u201cPoshn is using technology to simplify and organize the fragmented food value chain in India. Both buyers and suppliers are adopting Poshn\u2019s platform for convenient access to quality products at competitive prices.\u00a0 We are excited to partner with Shashank and Bhuvnesh,\u201d said Mukul Gulati, Managing Partner, Zephyr Peacock India.<\/p>\n","protected":false},"excerpt":{"rendered":"