Foodtech startup Poshn 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 funding round brings Poshn's total equity raised to $8 million since its inception in 2020. The fresh capital will help Poshn expand its innovative stack of solutions and reach global markets.
"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 backwards in the chain and open foreign/export markets over the next 12 months while growing profitably," said Shashank Singh, co-founder of Poshn.
Founded by Shashank Singh and Bhuvnesh Gupta in 2020, Poshn is a full-stack food supply chain startup addressing the challenges in the food value chain across food processing units, wholesale buyers, institutions, general trade, and retailers.
The platform simplifies the onboarding process for both buyers and sellers and offers document collection, verification, and ledger matching.
The startup leverages proprietary AI models to provide a single platform for the wholesale buying and selling of processed commodities.
Poshn claims that its revenue increased sixfold between FY22 and FY24 and that it is EBITDA profitable. It also claims to have a presence in more than 16 states in India and aims to expand its business into Southeast Asia and the Middle East.
What did investors say about Poshn?
Prime Venture Partners expressed their confidence in Poshn's potential, saying, "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."
Mukul Gulati, Managing Partner at Zephyr Peacock India, emphasized Poshn's value proposition, stating, "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."
Gupta highlights the startup's operational and capital efficiency
Bhuvnesh Gupta, co-founder of Poshn, highlighted the startup's operational and capital efficiency, saying, "Poshn 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."
Strengthening innovative stack of solutions
Poshn plans to use the fresh funds to strengthen its innovative stack of solutions, addressing inefficiencies in the food supply chain market, which is valued at over $800 billion. The startup aims to further integrate forward and backward in the value chain, unlocking efficiencies through capacity planning and reaching retailers directly.
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