Agri-tech firm Otipy raises ₹235 cr in Series B funding
NEW DELHI: Agri-tech start-up, Otipy, that delivers fruits and vegetables to consumers, has raised ₹235 crore or $32 million in a Series B round led by Westbridge Capital. Existing investors SIG and Omidyar Network India also participated in the round, the company said on Monday.
The funding comes six months after Otipy’s Series A funding of ₹76 crore.
Operated by Crofarm Agriproducts Pvt Ltd., Otipy was launched in 2020 by Varun Khurana. The launch timing coincided with persistent lockdowns across India that drove consumers to stock up on goods of daily use and log online to buy everything from pulses to fruits. Otipy sources fruits and vegetables directly from farmers. It then uses local community leaders that work as its delivery partners. These could be tailors, grocery shops owners, or small businesses looking for an additional source of income. Thousands of such partners on its network receive packages in morning and dispatch them to respective households in the area.
In all, Otipy caters to over five lakh households—largely in Delhi-NCR—moving over 100 tonnes of fresh produce from farms to consumers daily. It also supplies to cities such as Sonepat, Meerut and Bhiwadi. It plans to reach 2.5-3 million households in Delhi-NCR by the end of the next fiscal, Khurana told Mint. He said the company now plans to use the funds to expand to newer cities such as Mumbai, Bengaluru, Hyderabad and Chennai apart from deepening presence in existing markets. The company also plans to add newer categories such as the recently added fresh breads offering.
India’s e-grocery market is expected to grow over 59% CAGR to $18 billion by 2024, according to an estimate by brokerage Motilal Oswal Financial Services Limited. India had 154 million online transacting households in 2020, with 130 million already using some form of e-grocery platforms or at least willing to try, the report said. The pandemic also pushed consumers towards ordering such goods online expanding the addressable market for e-grocers.