Foodtech start-up Poshn raises $6 million via equity, debt in pre-series A funding

Poshn has raised $4 million in equity and $2 million in debt in a pre-series A funding round recently. The funding was led by Prime Venture Partners and Zephyr Peacock India will help Poshn create the largest distribution network in the food ecosystem, the company said in a statement.

With the latest round of funding, Poshn has raised around $8 million in equity since its inception in 2020. The start-up was founded by Shashank Singh and Bhuvnesh Gupta.

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.

It is planning 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, the company said.

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Shashank Singh, Co-founder of Poshn, said, “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.”

According to the company, it has experienced remarkable growth with revenues witnessing a six fold growth from FY22 to FY24, while maintaining profitability. Poshn is one of the few start-ups that have been EBITDA profitable while supporting the growth trajectory.

Since its inception, the start-up has marked a presence in more than 16 States in India. In 2022, it raised $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.

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.

Bhuvnesh Gupta, Co-founder, said, “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.”

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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.

“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,” Mukul Gulati, Managing Partner, Zephyr Peacock India, said.