Otipy, an Indian agritech startup offering B2B2C commerce services for fresh produce, has raised $10.2 million in its Series A funding round.
The round was led by SIG Investments and counted with the participation of Omidyar Network India. Existing investors like Innoven Capital, Inflection Point Ventures, Pravega, and FactorE, further invested in the startup.
While the startup had only raised $2 million on its last funding round, the traction it has gained ever since sparked the interest of investors and sourcing over 2.5k tonnes of fresh produce every month.
The startup’s funding will be used to further boost its growth and add categories to its supply chain.
With an innovative farm-to-fork delivery model, Otipy aims to increase freshness and make it its distinctive trademark by delivering to consumers in no more than 12 hours.
It also decreases fresh produce wastage by using AI-powered prediction engines to maximize distribution.
Varun Khurana, Otipy Founder & CEO, referred to this approach by commenting,
“Fresh produce is a 35%-40% gross margin category, however, it is the wastage that kills those margins. We are amongst the first companies that have been able to control it via our innovative model.”
The platform also benefits farmers by increasing their earnings up to 20% and providing them with increased liquidity via faster payments, while also reducing wastage they would incur on traditional distribution networks.
These benefits have allowed Otipu to partner with more than 5 thousand community leaders and 10 thousand farmers across the country, which has resulted in over 1 million households being served fresh fruits and vegetables at their doorstep.
The agritech startup saw its revenue more than double in 2020, allowing it to expand its operations and increase its employee benefit expenses, while also planning to expand its operations from the Delhi-NCR region to other cities once it raised the $10 million required to do so.
Now, the startup has accomplished this goal, making it ready to expand across the country.