Delhi-based Otipy, an agritech startup providing fresh fruits and vegetables sourced straight from the farms, has secured US$ 10.2 million in a Series A funding round led by SIG on 19 June 2021.
Investors: The investment round featured SIG as the lead investor with participation from Omidyar Network India, Innoven Capital, current investors Inflection Point Ventures, Pravega and FactorE.
Purpose of the funding: The startup intends to deploy the proceeds from the investment round to meet its future expansion plans and add perishable food items to its basket of offered products.
About Otipy
Established in 2020 by Varun Khurana, Otipy sources its food products (2,500 tonnes) from over 10,000 farmers across the country every month and delivers them to consumers in less than 12 hours. The startup’s farm-to-fork business model enhances the nutritional value by securing produce from farms explicitly. Applying proprietary demand estimation software, the startup assures lesser or no storing of farm produce. Otipy presently operates in Delhi and boasts servicing 0.2 million households across the country. The startup procures the produce mainly from farmers in Haryana, Uttar Pradesh, Delhi, Gujarat and few other states.
Although the firm does not face direct competition from a similar company, new-generation social commerce corporations, namely DealShare and CityMall, show signs of entering the domain as the profit margin in the industry is tempting and enduring in the long run.
What the Founder has to say: “The Otipy paradigm is a great fit for final consumers, community leaders, and farmers. Moreover, rational users tend to become addicted to purchasing fresh products, leading to a high rate of repeated orders. Though the fresh produce market possesses a gross profit margin of 35-40%, a large part is lost in food wastage. However, Otipy has a unique and innovative model that enables mitigating food wastage and earning huge profits.”- Varun Khurana, Founder of Otipy.
What the Investors have to say: “Otipy is dedicated to framing a novel brand with the core emphasis on quality and adding value. Apart from delivering natural food products, it also enables local community heads and farmers to profit from selling their produce. Otipy’s business model runs parallel with our primary objective of adding value for food producers and the industry by allowing improved admittance to different markets.”- Madhav Tandan, Director of Investments at Omidyar Network India.
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