Poshn, an agritech platform for wholesale processed commodity distribution and financing has raised $3.8 million (Rs 28.8 crore) in seed funding round led byPrime Venture Partners and participation from Zephyr Peacock, the company said in a release. 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 provides a procurement platform especially for bulk processed commodities in a highly fragmented agri supply chain market. 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 also assists buyers/sellers with logistics and offers flexible payment solutions.

The startup has partnered with more than 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% month on month (MoM) over the next one year,” the company said.

According to the company, 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. The developments in the Indian agriculture ecosystem has led to the growth of the agri-commodities market and we are 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,” the company said.

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

“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,” said Amit Somani, Managing Partner, Prime Venture Partners.

“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,” said Pankaj Raina, Managing Director, Zephyr Peacock.