May 6, 2024: Poshn, a full-stack startup, has successfully raised $4 million in equity and an additional $2 million in debt during its pre-series A funding round. The newly secured funds will play a pivotal role in the full-stack supply chain firm’s expansion strategy:
The food supply chain services startup aims to dominate the food supply chain by addressing critical gaps and inefficiencies through their full-stack solution:
- Demand Aggregation:
- The startup aggregates demand from various channels of trade, streamlining the process for food MSMEs (Micro, Small, and Medium Enterprises) and institutions.
- Embedded Finance:
- The startup provides working capital solutions through embedded finance, ensuring smoother operations for its partners.
- Vendor Partnerships:
- Poshn collaborates with logistics partners, warehouses, and vendors to optimize the supply chain.
- SaaS Solutions:
- Leveraging technology, Poshn offers software-as-a-service solutions to enhance efficiency and transparency.
Poshn’s Global Expansion Plans
The newly secured funds will play a pivotal role in the food tech supply chain services expansion strategy:
- Distribution Network Growth:
- The firm create the largest distribution network by integrating forward and backward in the supply chain.
- The company plans to expand its reach across domestic and international markets.
- Global Markets:
- The firm will explore profitable import and export categories, targeting Southeast Asian and Middle Eastern countries.
- By tapping into these markets, the startup seeks to establish a global footprint.
Impressive Financial Performance
The food tech startup growth trajectory is remarkable:
- Revenue Surge:
- Over the past three years, Poshn’s revenue has skyrocketed six-fold, demonstrating its market traction.
- EBITDA Profitability:
- The company has maintained profitability, emphasizing its prudent financial management.
Investor Perspective
Prime Venture Partners, one of Poshn’s investors, commended the startup’s supply-first approach and bottom-line focus. They anticipate further vertical integrations within the supply chain.
The Food Supply Chain Landscape
The food supply chain startup operates in a market worth over $800 billion, which remains highly fragmented on the supply side. Challenges include intermediaries, capacity planning issues, unpredictable demand, and technological gaps. Poshn’s targeted solutions aim to bridge these gaps effectively.
The startup’s recent funding round positions it for accelerated growth, both domestically and internationally. As the foodtech industry evolves, Poshn’s innovative approach promises to reshape the supply chain landscape.
The investment was led by existing backers Prime Venture Partners and Zephyr Peacock India. With this latest capital infusion, the food supply chain startup total equity funding now stands at approximately $8 million since its inception in 2020.
