Poshn, an agri-trading platform, has raised $3.8 million (Rs 28.8 crore) in seed funding round from Prime Venture Partners with participation from Zephyr Peacock.
The platform plans to use this fund to grow aggressively and invest in technology and business operations.
The Delhi-based Poshn was founded in 2020 by Shashank Singh and Bhuvnesh Gupta, It provides a buying platform for bulk processed commodities, especially in the highly fragmented agricultural supply chain market.
The startup aims to streamline the agri-supply chain through seamless wholesale trading and provides full-stack services for wholesale trading of commodities where bulk buyers can buy from millers and stockists. It assists buyers/sellers with logistics and provides flexible payment solutions.
The company said that Poshn has registered 20x growth in the last eight months and is targeting to grow at 25% month over month (MOM) in the next one year.
According to the startup, agriculture is playing an important role in India as it ensures food security for nearly 1.3 billion people, employs more than 50% of the workforce, and contributes about 15.4% to the country’s GDP. The development of the Indian agricultural ecosystem has driven the growth of the agricultural commodity market and we are the largest consumer of commodities and agricultural products.
Poshn has partnered with over 100 wholesalers in e-commerce, modern trading, general merchandise and has aggressively adopted across the supply chain.
“One of the most critical parts in this value chain is the procurement of commodities between food processing units i.e. manufacturers, mills, repackers, etc. and bulk buyers consisting of wholesalers, modern trade, and B2B commerce platforms. More than 500,000 food processing units in India add tremendous value which will remain critical for decades to come”, the company said.
“We see a huge opportunity in the processed agri space as well as the wholesale procurement sector as it has hardly seen any innovation in the past,” said, Shashank Singh, Co-founder, Poshn.
“Poshn is at the very beginning of a huge trend of making the agri-trade supply chain effective and efficient. The company is also solving for the financial needs of various stakeholders and has frugally scaled its way to meaningful traction”, said, Amit Somani, Managing Partner, Prime Venture Partners. “Agri commodity supply chain is highly fragmented, leading to friction across different work streams such as product discovery, timely supply, logistics including fulfillment, and credit. Over the last few years, we have witnessed micro and small entrepreneurs increasingly use tech solutions to improve sales, accounting, fulfillment, and working capital management. We are encouraged by early platform adoption by buyers and suppliers. We believe that the intersection of tech and credit can help Poshn emerge as a leader in offering full-stack B2B agri commodity supply chain solutions”, said, Pankaj Raina, Managing Director, Zephyr Peacock.
They empower the producers, mandis, and wholesalers to take their stores online thereby expanding their reach and giving them visibility. Their platform provides seamless discovery of and transactions for the wholesale agri-market. They also assist buyers/sellers with logistics and offer flexible payment solutions.