Agritech Startup Otipy Plans To Raise $75 Million
Otipy sells fresh fruits and vegetables as well as daily essentials in the NCR and Mumbai.
Agritech startup Otipy, which sells fruits, vegetables and groceries online, plans to raise $75 million or about Rs 620 crore to scale up its business that is likely to grow more than two times to Rs 170 crore this fiscal, its founder Varun Khurana said.
Otipy, operated by Crofarm Agriproducts Pvt., was launched in 2020. It sells fresh fruits and vegetables as well as daily essentials in the National Capital Region and Mumbai.
"Our revenue is estimated to reach Rs 160–170 crore in the current 2022–23 fiscal year from Rs 70 crore in the previous year. We have achieved an annual run rate of Rs 200 crore," Khurana told PTI.
He said 80% revenue comes from fruits and vegetables.
Asked about plans to raise funds, Khurana said: "We are in talks with potential investors to raise $75 million in Series C round." He hoped to close the round by June this year.
The company has raised $45 million across its Series A and B rounds. Khurana said the startup will use the fund for future growth.
"We are looking to expand our business in Bengaluru and other major southern cities," he added.
Otipy works closely with over 1,000 partners/resellers across Delhi-NCR and Maharashtra who serve over 12 lakh end consumers with fresh produce at their doorstep.
The startup has onboarded more than 20,000 farmers and sources fresh fruits and vegetables from farmers across Haryana, Uttar Pradesh, Delhi, Gujarat, Himachal Pradesh, Karnataka, Rajasthan, and Maharashtra.
The farm-to-home platform connects consumers to farmers through a community of resellers, who earn a healthy commission while handling the last-mile delivery of fresh produce.
Khurana highlighted that the company is getting 25,000 orders daily from consumers on its mobile app.
Otipy has also achieved operational break-even in the NCR this financial year, he said.
"Fruits and vegetables are a 38–40% margin category, but it is the wastage that kills those margins. We have been able to reduce wastages to 3–4% by leveraging our artificial intelligence based demand prediction technology, this has helped us achieve operational break-even quickly," Khurana said.
The company has expanded its category offering to include dairy, bakery as well as dry agri commodities like pulses, grains and spices, among others.
The startup sells more than 130–140 tonnes of fresh produce—fruits and vegetables—to consumers every day.