Foodtech Startup Poshn Raises $4 Million in Funding Led by Prime Ventures Partners, Zephyr Peacock
In a significant boost to its mission of redefining the food supply chain, Poshn, an innovative food-tech startup, has successfully raised $6 million in a pre-Series A funding round. This round included $4 million in equity and $2 million in debt, with Prime Venture Partners and Zephyr Peacock India leading the charge. This latest infusion has brought the total equity funding to approximately $8 million since the company’s inception in 2020.
Founded by Shashank Singh and Bhuvnesh Gupta, Poshn aims to streamline the highly fragmented and unorganized food supply chain. The startup has taken a full-stack approach, impacting various phases of the supply chain, including food processing units, wholesale buyers, institutions, general trade, and retailers.
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Strategic Use of New Funds
With the fresh capital, Poshn plans to expand its innovative stack of solutions that are designed to address the significant gaps within the food supply chain. Part of the funds will also be dedicated to expanding the company’s footprint globally, with a focus on lucrative markets in 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 our investing partners and the infusion of fresh equity, we plan to aggressively integrate forward and backward in the chain and open foreign/export markets over the next 12 months while growing profitably,” said Shashank Singh, Co-founder of Poshn.
Remarkable Growth and Operational Efficiency
Over the past three years, Poshn has witnessed a meteoric rise in its revenue, which has increased six-fold from FY22 to FY24, also achieving EBITDA profitability. The company operates across more than 16 states in India and has established robust partnerships with several banks and NBFCs for its debt financing needs, including prominent names like ICICI Bank, Alteria Capital, UCIC, Northern Arc, Blacksoil, and Capsave.
Poshn has been lauded for its supply-first approach, which has significantly addressed the challenges in 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,” noted a spokesperson from Prime Venture Partners.
Future Plans and Industry Impact
Looking ahead, Poshn is set to continue enhancing its operational and capital efficiency, which Bhuvnesh Gupta, Co-founder, believes stands out not just in food tech but across B2B segments. With renewed capital and trust, Poshn is poised to scale new horizons with the same efficiency that has characterized its operations so far.
The global food supply chain market, valued at over $800 billion, is plagued with inefficiencies stemming from a plethora of intermediaries, poor capacity planning, unpredictable demand, and a lack of technology. Poshn is tackling these issues head-on, using technology to simplify and organize the food value chain, thereby providing convenient access to quality products at competitive prices.
“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 at Zephyr Peacock India.
As Poshn continues to innovate and expand, its efforts are not only enhancing the efficiency of the food supply chain but are also setting the stage for a more sustainable and profitable agricultural sector. This latest funding round marks a significant milestone in their journey towards becoming a category-defining company in the years to come.
