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“Digital transactions becoming norm in India’s agri-trade”
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Monday, 24 March, 2025, 08 : 00 AM [IST]
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 The agricultural sector is undergoing a massive transformation, driven by a combination of advanced technologies that collectively uplift productivity, efficiency, and transparency, said Bhuvnesh Gupta, co-founder, Poshn, in an email interaction with Nandita Vijayasimha. Excerpts:
How would you describe the scene for agri-trade and related supply chain platforms in India?
India’s agri-trade and supply chain landscape is undergoing a seismic shift. With a highly fragmented procurement process, inconsistent quality, and financial constraints for SMEs (small and medium enterprises). The sector has long struggled with inefficiencies that hinder growth. However, we are spearheading a transformation, ensuring that processors and millers across the country have access to the right set of commodities with unmatched transparency, quality, and financial flexibility.
For decades, India’s agri-commodity supply chain has been burdened with middlemen, opaque pricing, and logistical bottlenecks.
One of the biggest roadblocks for SMEs in the agri-trade sector is the lack of working capital. Traditional financing methods often fail to cater to the fast-moving nature of the food supply chain. We address this by facilitating supply chain credit, allowing processors and millers to procure commodities without immediate financial strain. This enables businesses to scale, enhances market liquidity, and fosters long-term growth within India’s food processing industry.
Platforms are also revolutionising the agri-trade sector by introducing tech-enabled solutions, better logistics, and digital procurement models. However, many of these platforms focus primarily on digitisation without addressing the core financial challenges faced by SMEs. Unlike Poshn, which integrates financial empowerment with procurement, most competitors struggle to offer a seamless combination of credit access, quality assurance, and cost efficiency. While their innovations contribute to an evolving market, our holistic approach positions it as a true game-changer in the industry.
In your view what are the challenges of the agri trade platforms?
Indian agri-trade platforms face multiple challenges that impact scalability, efficiency, and adoption. Among the biggest hurdles is the fragmented supply chain, where small and medium farmers, traders, and wholesalers operate in silos with varying levels of digital adoption. This leads to inefficiencies in procurement, logistics, and pricing.
Regulatory compliance and frequent policy changes add another layer of complexity. Agri-commodities are subject to government price controls, stock limits, import/export restrictions, and taxation rules, which frequently change, making it difficult for platforms to maintain stable operations.
Logistics and warehousing constraints also pose difficulties, as perishable commodities need proper storage and timely transportation. The lack of an efficient cold-chain network increases wastage and impacts supply chain efficiency.
One of the biggest bottlenecks in India's agri-trade platforms is supply chain finance and credit access for SMEs, along with persistent payment delays. A large portion of buyers in the agri-commerce sector rely on informal credit systems, making transactions unpredictable and limiting scalability for both buyers and sellers. Delayed payments and cash flow constraints often force SMEs to operate on thin margins, reducing their ability to expand and take on larger orders.
Traditional banks and NBFCs are often hesitant to offer credit to small traders and wholesalers due to the lack of formal financial records, seasonal volatility, and high risk of defaults. This creates a gap where SMEs struggle to access working capital, leading to slow inventory movement, supply chain disruptions, and dependency on high-interest informal loans.
How is your company positioned to solve complex issues faced by wholesale buyers and sellers through in agri trade?
We are addressing critical inefficiencies in the agricultural trade sector by streamlining transactions for wholesale buyers and sellers through technology-driven solutions. We are positioned to solve these complex issues by digitalising a traditional market, efficient procurement & supply chain, financing & credit solutions and reducing procurement costs, quality assurance & standardisation, compliance & transparency and expanding market reach.
What is the kind of awareness of your company across the agri community?
Our journey since 2021 has been one of steady growth and increasing recognition within the agri-trade community. In our initial phase, awareness about our company was limited, as we were just entering this space. However, with time, industry players have come to recognise and trust our platform.
In just our second year, we achieved Rs 460 crore in revenue, followed by Rs 600 crore in the next, and we are now on track to cross Rs 1,000 crore in agri-trade this year. These milestones have significantly strengthened our reputation across millers, processors, and suppliers, who now understand our transparent, efficient, and tech-driven approach to B2B trade.
The B2B agri-commerce segment is a highly reference-driven market, where buyers and suppliers rely on trusted networks before engaging in transactions. Unlike B2C, where purchases are smaller, a single B2B transaction involves at least one full truckload, meaning each deal typically ranges from Rs 15-20 lakh. This makes credibility and trust essential in our industry.
From our first year of operations, we focused on building strong relationships, which are now yielding significant benefits. Today, we acquire clients largely through referrals, with businesses approaching us instead of the other way around. They see the value we bring and are eager to explore how we can enhance their trade operations. This growing trust within the agri-community continues to drive our expansion, reinforcing our position as a leading B2B procurement platform.
How easy has it been for the company to expand into sugar, pulses, oils, grains, dry fruits, spices?
Expanding into sugar, pulses, oils, grains, dry fruits, and spices has been both strategic and challenging us. Our strong supplier network, financing solutions, and tech-driven procurement have scaled efficiently. Existing buyer demand enabled seamless cross-selling, while AI-powered insights optimised pricing and logistics. However, quality control and regulatory compliance complexities posed hurdles. Each commodity required unique handling, payment cycles, and logistics adjustments. Despite challenges, our digital-first approach, structured supply chain, and demand-driven expansion have made diversification successful, reinforcing its position as a leading B2B procurement platform for staples and FMCG products.
What are the expansion plans envisaged?
We are expanding, with a particular emphasis on strengthening presence in South India, where our reach has been relatively limited. Our goal is to establish a strong supplier and buyer network in the region, ensuring seamless access to our tech-driven procurement solutions. While we continue to witness steady growth in north India, we are also ramping up operations in western, central, and southern states to create a pan-India presence. Additionally, we are entering the import and export sector for various agri-commodities, leveraging India’s strong agri-trade potential to connect domestic suppliers with international markets. Our long-term vision is to scale globally, building a seamless, tech-enabled trade ecosystem that drives efficiency, transparency, and growth for all stakeholders in the agri-commerce space.
You raised funds in 2022 to the tune of Rs 28.8 crore. What were these for and would you be looking for more funds?
In 2022, we raised Rs 28.8 crore. These funds played a crucial role in expanding our footprint beyond sugar and oil, allowing us to venture into pulses, rice, grains, dry fruits, and spices, making our company a one-stop B2B procurement platform for staples and FMCG.
A key focus was building Poshn Nucleus, our proprietary tech tool that enhances procurement efficiency, price discovery, and supply chain management. Additionally, we strengthened our tech team and on-boarded top industry experts, ensuring deep market expertise and seamless operations. We look forward to exploring new growth opportunities, expanding our reach, and driving innovation in agri-commerce.
How receptive are the PE and VC sectors towards B2B agri trade platforms?
India's agricultural sector has always been a pillar of the economy, employing the highest number of people and contributing significantly to global food production. According to the Food and Agriculture Organisation (FAO), India is the world's largest producer of milk, jute, and pulses, and the second-largest producer of rice, wheat, sugarcane, cotton, groundnuts, and fruits and vegetables. This immense agricultural output has made India a crucial player in global agri-trade.
Indian agritech has seen significant investment inflows, raising over $2.5 billion since 2014. This demonstrates the global investors’ confidence in India's agricultural input and supply chain ecosystem. While India's overall startup ecosystem saw its highest fundraising in 2021, touching $32 billion, the following year witnessed a decline. However, since 2023, venture capital (VC) and private equity (PE) investments in India have been on a steady rise, showing renewed interest and optimism.
B2B agri trade platforms, which streamline supply chains, reduce inefficiencies, and provide better market access, have emerged as attractive investment avenues for PE and VC firms. Given that agriculture employs the most people in India and is globally recognised for its produce, investors see a strong potential in digital and tech-driven interventions within the sector.
Historically, India has undergone agricultural revolutions, including the Green Revolution, White Revolution and Blue Revolution. Today, India stands at the brink of another revolution: one fueled by capital infusion and increasing financial backing for agri-tech startups. As funding continues to flow into the sector, B2B agri trade platforms are set to transform India's agricultural landscape, making it more efficient, transparent, and globally competitive.
This revolution will be driven by startups transforming the sector, and the real benefits will go to platforms that are revolutionising agri-tech in India. As funding continues to flow into the sector, B2B agri trade platforms are set to transform India's agricultural landscape, making it more efficient, transparent, and globally competitive.
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