New Delhi-based Poshn describes itself as an ‘ag-fintech’ – a combination of agritech and fintech. The startup is looking to solve complexities, such as lack of access to reliable distribution to suppliers, discovery of prices, and delivery reliability, involved in B2B commodity trading space.
Founded in 2020 by Bhuvensh Gupta and Shashank Singh, Poshn leverages proprietary AI models to provide a single platform for wholesale buying and selling of commodities in what is a highly fragmented processed commodity trade market. The company does not have direct competitors, but competes in specific segments such as Zetwerk (manufacturing), Infra.Market (construction), and Fashinza (apparels).
We spoke to the co-founder Singh to learn more about how the startup works and the problems it is trying to solve for India. Here are the edited excerpts:
Please elaborate the problems Poshn is trying to solve for India.
The key problems that Poshn solves are – access to reliable distribution to suppliers in otherwise fragmented markets, efficient discovery of prices and commodities for buyers, delivery reliability for buyers, and working capital (credit) for suppliers. On Poshn, wholesale buyers post their requirements with us which we reverse auction with our select set of suppliers for price discovery and delivery schedules. Once the right price and schedule are agreed upon with our buyers, the trade is closed.
While buyers benefit from factors like efficient and instant discovery of prices and commodities along with reduction in procurement timelines and fulfillment and delivery reliability, suppliers stand to gain on account of factors like access to reliable distribution to SMEs in otherwise fragmented markets, capacity planning, and also access to working capital.
Please give an overview of your growth since inception.
We are working with more than 500 wholesalers across ecommerce, modern trade, general trade and institutional buyers. Poshn has ventured into several categories such as dry fruits, milk, wood pulp, etc, with a 5x growth over the last 12 months. We are set to clock an ARR of over $100 million by the end of this financial Year.
In the last five months, we have ramped up our topline revenue to an ARR of $6500 million with its services in 400+ pincodes with a bouquet of 1,000+ products.
We have closed the month of January at monthly topline revenue of Rs 57 crore with 5x growth in the last 12 months. We have doubled our user base over the last year with an average quarterly retention of top buyers of over 90%.
What are the new features that you will roll out in the future?
Going ahead, we plan to expand in the domestic and international markets in the commodities in which we operate along with the expansion of the commodity suite. By 2030 we aim to be the go-to B2B platform in the food and agro space not just in domestic but in global markets as well. We will continuously thrive to solve the challenges faced by players in this ecosystem.
We will be looking to go deep in the value chain in the segments we operate there by unlocking more valuing for the user base. Also, we will be focussing on the geographical expansion in the categories of operations.
