Agritech platform Otipy, operated by Crofarm Agriproducts, plans to clock an annual recurring revenue (ARR) of ₹200 crores in the financial year ending March 2023 growing 3X over the previous year. Otipy is India’s leading community group buying platform for fresh produce and daily essentials. Today, Otipy works with over 1000 partners and resellers across Delhi-NCR and Maharashtra who serve over 12 lakhs 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. This makes the platform India’s leading farm-to-home platform connecting consumers to farmers through a community of resellers and earning a healthy commission while handling the last-mile delivery of fresh produce. Over the past nine months of CY 2022, Otipy saw 2x growth in the number of new registered users; the number grew from 6 lakhs in March 2022 to over 12 lakhs by December 2022.
Otipy also achieved operational break-even in Delhi NCR this financial year. “Fruits and vegetables is a 38-40 per cent margin category, it is the wastage that kills those margins. We have been able to reduce wastages to 3-4 per cent by leveraging our AI (artificial intelligence) based demand prediction technology. This has helped us achieve operational break-even quickly. For most companies’ fruits and vegetables is a loss-making category”, said, Varun Khurana, Founder and CEO of Otipy.
“We are specialists when it comes to the farm-to-home category of products. We have further expanded our category offering to include dairy, bakery as well as dry agri commodities like pulses, grains, spices among other food produce.” he added
The startup sells more than 130-140 tonnes of fresh produce (fruits and vegetables) to consumers every day which contributes to 80 per cent of the business. Other categories like dairy, bakery and dry agri-commodities are already contributing to 20 per cent of the business.
On further fundraising plans, Khurana added, “It was our conscious strategy to stay limited in very select geographies and prove unit economics of the model before scaling. Now that we have hit operational break-even, we are planning further scale-up.” So far the startup has raised a total funding of more than $45M across its Series A and B rounds. The company is in talks to raise a $75M series C round.
Otipy plans to launch its services in multiple cities in India including Bangalore, Hyderabad and Chennai and also has plans to go international. The company is currently on a hiring spree and hired 400 employees in CY 2022 and is aiming to bring the total count to 600 employees by March 2023.
Read more: Zepto introduces farmer engagement programme ‘Zepto Bloom’
RuralMarketing.in is now on Telegram. Click here to join Rural Marketing on Telegram and stay updated with the latest news and updates on rural business and the economy.
