Agri-Tech Startup Poshn Raises INR 28.8 Crore in Seed Funding to Digitize Wholesale Commodity Trading
Wednesday, April 27, 2022 11:30AM IST (6:00AM GMT)
Reports 20X growth in the last 8 months; set to transform agri-chain ecosystem Aims to be the dominant fulfillment partner for staple wholesalers
Bengaluru, Karnataka, New Delhi, Delhi, India:
Poshn, a platform for wholesale processed commodity distribution & financing has raised INR 28.8 crore in seed funding, led by Prime Venture Partners and participation from Zephyr Peacock. Poshn provides a seamless and efficient procurement platform especially for bulk processed commodities in a highly fragmented agri supply chain market. The startup has partnered with 100+ wholesalers across ecommerce, modern trade, general trade and has seen an aggressive adoption from across the supply chain. Poshn has reported a 20X growth in the last eight months and aims to grow at 25% MoM over the next one year. The startup will use the fresh capital to aggressively grow and hire across tech and business functions.
Founded in 2020 by Shashank Singh and Bhuvnesh Gupta, Poshn is a platform that takes a product-first approach towards solving the complex problems in B2B agritrade. The company aims to organize the agri-supply chain by making wholesale trading seamless. It offers full stack services for the wholesale trading of commodities where wholesale buyers can purchase from millers and stockists. It not only provides seamless discovery of and transactions for the wholesale agri-market but also assists buyers/sellers with logistics and offers flexible payment solutions.
Agriculture continues to play an important role in India as it ensures food security for about 1.3 billion people, employs more than 50% of the workforce, and makes a contribution of about 15.4% to the country’s GDP. Various segments of the agriculture value chain from consumption to production that includes retailing, wholesaling, logistics, processing and production have been undergoing rapid and unprecedented changes in recent times in India. The developments in the Indian agriculture ecosystem has led to the growth of the agri-commodities market and the company is the largest consumer of commodities and agricultural products.
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. Currently, wholesale buying and selling happens in silos where a buyer buys from his select set of agents who in turn have a select set of sellers. The buyers struggle with price discovery, on-time delivery, quality of produce and working capital. Similarly, the suppliers’ challenges lie around demand predictability, timely payment, working capital management and a limited and inelastic distribution network. With very little digitisation, the sector faces several challenges when it comes to access to credit and robust distribution channels and fragmented supply units which makes discovery (price, suppliers, commodities) complex. There are often 6-8 intermediaries between the farmer and the retailer including some who add real value to the product and the trade, but a large number of these intermediaries add on to the inefficiency in the supply chain.
Poshn makes wholesale procurement seamless and gives the buyers a one-window shop to get the best prices from an array of suppliers and the trust to ensure assured and hassle free deliveries. Poshn is addressing the challenges faced by hundreds and thousands of food processing units and more than two million wholesale buyers. The platform adds a layer of trust by bringing in transparent pricing, quality check, on-time delivery, and providing working capital financing wherever required. By removing the working capital constraints for the buyers, Poshn helps them to procure more and increase their turnover. At the same time, sellers are able to expand their network and reach more buyers via the Poshn platform, thereby increasing their business.
Shashank Singh, Co-founder, Poshn
"The initial customer traction we have achieved in a short time reinforces our belief in the agri tech space and we are on a mission to make wholesale trade efficient, effective and seamless. 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. We are delighted to partner with Prime and Zephyr in this journey and bring about the much required digital transformation in the agri–supply chain."
Bhuvnesh Gupta, Co-founder, Poshn
"Poshn solves for some of the key issues plaguing the processors, millers, repackagers in the agri sector. We resolve two of the greatest pain points for wholesale buyers and sellers; working capital and distribution. With payment-on-deliveries and best-in-class verified buyers, Poshn is delivering hassle free business growth to our sellers and on a journey to be the most liquid commodity exchange. We believe that many of the sector’s challenges can be solved by technology and are excited 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 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. We, at Prime, are delighted to back two missionary founders solving a huge and meaningful problem in Agri-trade."
Pankaj Raina, Managing Director, Zephyr Peacock
"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."
Poshn is a digital agri-trading network that enables buyers and sellers of agricultural commodities to trade online. The company is transforming the highly fragmented processed commodity trade market into a technology lead global marketplace enabling trust and efficiency. It makes wholesale trading seamless by offering full stack services for the wholesale trading of commodities. For more information, please visit: https://poshn.co/.
Poshn, a platform for wholesale processed commodity distribution & financing has raised INR 28.8 crore in seed funding, led by Prime Venture Partners and participation from Zephyr Peacock. Poshn provides a seamless and efficient procurement platform especially for bulk processed commodities in a highly fragmented agri supply chain market.