Agritech startup Otipy is planning to raise $75 million funding to scale up its business that is likely to grow more than 2-fold to INR 170 crore this fiscal.
Otipy is an Indian agritech startup that specializes in selling fresh produce, including fruits, vegetables, and groceries, online. The company was launched in 2020 and has already raised $45 million from its Series A and B funding rounds. It is now looking to raise an additional $75 million to expand its business further.
Otipy currently operates in Delhi-NCR and Mumbai and has achieved operational break-even in Delhi-NCR for the current fiscal year. The company works closely with over 1,000 resellers who connect more than 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 multiple regions across India, including Haryana, Uttar Pradesh, Delhi, Gujarat, Himachal Pradesh, Karnataka, Rajasthan, and Maharashtra.
Khurrana, said,”Our revenue is estimated to reach INR 160-170 crore in the current 2022-23 fiscal year from INR 70 crore in the previous year. We have achieved an annual run rate of INR 200 crore,” and added “We are in talks with potential investors to raise $75 million in Series C round.”
The company uses an AI-based demand prediction technology to minimize wastage and reduce it to 3-4% from 38-40%, which is the margin category for fruits and vegetables. This has helped Otipy to achieve operational break-even quickly. The startup has expanded its product offerings to include dairy, bakery, pulses, grains, spices, and other dry agri commodities.
Otipy plans to use the new funding to expand its services in multiple cities in India, including Bangalore, Hyderabad, and Chennai, and to go international. The startup is also in the process of hiring new employees, with a goal of employing a total of 600 by March 2023. With its innovative business model and efficient use of technology, Otipy is poised for further growth and success in the years to come.