Bangalore, Karnataka, New Delhi, Delhi, India:
Poshn, a platform for wholesale distribution and financing of processed products raised INR 28.8 crore in seed funding, directed by Main venture capital partners and the participation of Zephyr Peacock. Poshn provides a transparent and efficient sourcing platform, especially for bulk processed products in a highly fragmented agricultural supply chain market. The startup has partnered with More than 100 wholesalers in e-commerce, modern commerce and general commerce and has seen aggressive adoption across the supply chain. Poshn reported a Growth multiplied by 20 in the last eight months and aims to grow 25% MoM over the next year. The startup will use the new capital to expand and aggressively hire in technology and business functions.
Founded in 2020 by Shashank Singh and Bhuvnesh Gupta, Poshn is a platform that takes a product-centric approach to solving complex issues in B2B agricultural trade. The company aims to organize the agricultural supply chain by making wholesale trade transparent. It offers comprehensive services for the wholesale commodity business where wholesale buyers can purchase from millers and resellers. It not only provides seamless discovery and transactions for the wholesale agricultural market, but also helps buyers/sellers with logistics and offers flexible payment solutions.
Agriculture continues to play an important role in India as it provides food security for around 1.3 billion people, employs over 50% of the workforce and contributes around 15.4% to the country’s GDP. Various segments of the agricultural value chain, from consumption to production, retail, wholesale, logistics, processing and production, have undergone rapid and unprecedented changes in recent times. India. The developments in the Indian agricultural ecosystem have led to the growth of the market for agricultural products and the company is the largest consumer of raw materials and agricultural products.
One of the most critical parts of this value chain is the supply of products between food processing units, i.e. manufacturers, mills, repackers, etc. and wholesale buyers consisting of wholesalers, modern businesses and B2B trading platforms. Over 500,000 food processing units in India add tremendous value that will remain essential for decades to come. Currently, wholesale buying and selling takes place in silos where a buyer buys from their selected set of agents who in turn have a selected set of sellers. Buyers struggle with price discovery, on-time delivery, product quality, and working capital. Similarly, the challenges for suppliers lie in the predictability of demand, payment terms, working capital management and a limited and inelastic distribution network. Very little digitized, the sector faces several challenges in terms of access to credit and robust distribution channels and fragmented supply units that make discovery (prices, suppliers, raw materials) complex. There are often 6-8 intermediaries between the farmer and the retailer, some of whom add real value to the product and the trade, but many of these intermediaries add inefficiency to the supply chain.
Poshn makes wholesale sourcing transparent and gives buyers a one-stop-shop to get the best prices from an array of suppliers and the confidence to provide assured, hassle-free deliveries. Poshn addresses the challenges facing hundreds and thousands of food processing units and over two million wholesale buyers. The platform adds a layer of trust by bringing transparent pricing, quality control, on-time delivery, and providing working capital financing wherever needed. By removing working capital constraints for buyers, Poshn helps them source more and increase their turnover. At the same time, sellers can expand their network and reach more buyers through the Poshn platform, thereby increasing their business.
Shashank Singh, co-founder, Poshn
“The initial customer traction we have achieved in a short period of time builds our confidence in the agri-tech space and we are on a mission to make wholesaling efficient, effective and transparent. We see a huge opportunity in the space transformed agribusiness as well as the wholesale supply industry, as it has seen little innovation in the past.We are excited to partner with Prime and Zephyr on this journey and bring much-needed digital transformation to the agricultural supply chain.
Bhuvnesh Gupta, co-founder, Poshn
“Poshn is solving some of the key issues plaguing processors, millers and repackagers in the food and beverage industry. We are solving two of the biggest issues for wholesale buyers and sellers; working capital and distribution. delivery and best in class Verified Buyers, Poshn offers hassle-free business growth for our sellers and is on its way to becoming the most liquid commodity exchange.We believe that many challenges in the industry can be solved through technology and we are thrilled to have Prime and Zephyr on this journey with us.”
Amit Somani, Managing Partner, Prime Venture Partners
“Poshn is at the very beginning of a huge trend to make the agricultural trade supply chain efficient and effective. The company is also solving the financial needs of various stakeholders and has frugally cut its way to significant traction. , at Prime, are thrilled to support two missionary founders who are solving a huge and significant problem in the agricultural business.”
Pankaj Raina, Managing Director, Zephyr Peacock
“The agricultural commodity supply chain is highly fragmented, leading to friction between different workflows such as product discovery, timely sourcing, logistics including fulfillment and credit. Over the past few years, we have seen micro and small entrepreneurs increasingly use technology solutions to improve sales, accounting, execution and working capital management. We are encouraged by the early adoption of the platform by buyers and suppliers. We believe the intersection of technology and credit can help Poshn become a leader in providing complete B2B agricultural commodity supply chain solutions.”
Poshn is a digital agricultural trade network that enables buyers and sellers of agricultural products to trade online. The company is transforming the highly fragmented processed commodities trading market into a state-of-the-art global marketplace, driving trust and efficiency. It makes wholesaling transparent by offering comprehensive services for the wholesaling of raw materials. For more information, visit: https://poshn.co/.