Poshn, a food-tech start-up, has announced that it has raised $4 million in equity and $2 million in debt in a pre-series A funding round held recently. The funding led by Prime Venture Partners and Zephyr Peacock India will help Poshn create the largest distribution network in the food ecosystem.
With that, the company, founded by Shashank Singh and Bhuvnesh Gupta, has raised around $8 million in equity since its inception in 2020.
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.
Poshn plans to use the fresh funds to further build 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 and exports in profitable categories to Southeast Asian and Middle Eastern countries.
On the new funding round, 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 the infusion of fresh equity, we aggressively integrate forward and backward in the chain and open foreign and export markets over the next 12 months while growing profitably.”
As per Poshn, the company's revenue has skyrocketed sixfold from FY22 to FY24. Poshn is one of the few start-ups that has been EBITDA-profitable while supporting its growth trajectory.
In 2022, the start-up raised $4 million in equity in a seed round with Prime Venture Partner and Zephyr Peacock. Additionally, it has partnered with banks and NBFCs for its debt requirements. Some notable names include ICICI Bank, Alteria Capital, UCIC, Northern Arc, Blacksoil, and Capsave.
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. As per the company, Poshn is working on bridging these gaps with technology.
