Aavishkaar Capital invests $5M in Poshs Metal

This marks the Fund’s seventh investment. With a total corpus of $ 220 million, the Global Supply Chain Support Fund focuses on supporting SMEs in Asia and Africa that are part of global supply chains and are working towards environmentally and socially responsible production.

Apr 22, 2025 - 10:51

Aavishkaar Capital invests $5M in Poshs Metal

The Global Supply Chain Support Fund, managed by Aavishkaar Capital in partnership with Germany’s development bank KfW, has invested Rs 43 crore ($ 5 million) in POSHS Metal Industries Private Limited. POSHS is involved in processing auto-grade flat steel.

This marks the Fund’s seventh investment. With a total corpus of $ 220 million, the Global Supply Chain Support Fund focuses on supporting SMEs in Asia and Africa that are part of global supply chains and are working towards environmentally and socially responsible production.

Founded in 1998 by Ashok Kapoor, POSHS Metal Limited (Poshs Group) focuses on processing auto-grade steel in Western India and serves several major multinational automotive companies. It has been the exclusive processing and distribution partner for Tata Steel for over 25 years.

On the recent investment, Asheer Kapoor, Promoter and Director at Poshs Metal, said, the funding comes at a pivotal time as the company expands operations in Aurangabad. He noted that the increased capacity will improve customer service and reinforce the company’s commitment to quality and innovation, with investor backing reflecting strong support for its long-term vision.

Abhishek Mittal, Partner–Credit at the Global Supply Chain Support Fund, Aavishkaar Capital, said the investment will help Poshs establish a modern steel processing facility in Aurangabad, strengthening its position in Western India.

He added that as the auto sector navigates shifts toward electric vehicles and sustainability, Poshs’ focus on ESG practices, efficient logistics, and timely delivery will be key to its success. Aavishkaar Capital, through the Fund, aims to support such businesses with flexible, non-dilutive capital solutions.

Stephanie Lindemann-Kohrs, Global Head of Equity and Funds at KfW Development Bank, emphasized that KfW’s investment in the Fund, on behalf of the German government, aims to raise environmental and social standards in companies integrated into European supply chains.

With growing emphasis on sustainability and fair labor in auto manufacturing, she noted that the Fund’s rigorous due diligence process plays a key role in setting high benchmarks for its portfolio companies.