Otipy, an agritech startup that offers fresh produce through its Android and iOS applications, has partnered with the government-backed open network for digital commerce (ONDC) to expand its customer reach using the network’s seller apps Pincode and Paytm.
Established in 2020 by Varun Khurana and Prashant Jain, Otipy, a venture under Crofarm Agriproducts, operates as a B2B2C social commerce platform specializing in fresh produce such as vegetables, fruits, dairy products, and various grocery items.
Otipy utilizes its technology to source fresh produce from farmers, leveraging predictive demand calculations from its prediction engines. It guarantees delivery to customers within 12 hours of harvest. Additionally, Otipy boasts an industry-leading low wastage rate of just 3%.
Khurana explained that the company has successfully streamlined its supply chain, ensuring that produce moves from the farm to customers’ homes within a 12-hour window. Additionally, they conduct thorough tests on the products for contaminants such as heavy metals and pesticides.
Initially serving the Delhi-NCR region, Khurana mentioned that the startup expanded to Mumbai following a successful Series B funding round in 2022, raising $32 million from investors such as SIG and Omidyar Network India. He stated that the startup currently maintains an annual recurring revenue (ARR) of INR 240 crores.
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Otipy aims to extend its presence to cities such as Hyderabad, Bengaluru, and Chennai by the end of the current year. This expansion is anticipated as the startup intends to secure its Series C funding of approximately $75 million in the latter half of the calendar year 2024.
Khurana believes that the collaboration with ONDC will enhance the company’s strategy to expand its footprint across India.
Through ONDC, Otipy aims to establish a presence at various touchpoints for its end consumers. Additionally, it will prioritize bulk procurement directly from farmers and Farmer Producer Organizations (FPOs).
“The move beyond NCR has shown that our business model is capable of handling multi-city operations. With the ONDC integration, we believe we will be increasing our user base by getting onboard large buyer apps that have partnered with ONDC. We are expecting to increase our existing user base of 1.5 Lakh per month to 10 Lakh by the end of the year,” Khurana said.
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“With Otipy on the Open Network, it not only stands to benefit from an extensive reach of the network but also reinforces its commitment to fostering a sustainable and inclusive ecommerce framework,” said ONDC’s MD and CEO T Koshy.
Initially, the startup will integrate its platform with PhonePe’s Pincode and Paytm, with plans to later expand to other buyer platforms.
It’s worth mentioning that in FY23, Crofarm Agriproducts, the parent company of Otipy, experienced a notable 56% increase in total revenue from operations, reaching INR 96.43 Cr compared to INR 61.84 Cr in the preceding fiscal year.
Nevertheless, its losses surged by 49% to INR 100 Cr in FY23, up from INR 67.29 Cr in the preceding fiscal year.
In addition to Otipy, the company also possesses Farm Tale, a distributor of milk products, and One Farm, a distributor of grains and oils.
Otipy competes with Ninjacart, Farmiso, Citymall, and other similar companies.
As per a market study, the Indian agritech startup ecosystem anticipates a total market opportunity valued at $24 billion by 2025. Analysis reveals that these startups have collectively secured over $2.4 billion since 2014.
Conversely, Otipy became the second agritech startup to join ONDC, following SaaS-based B2B agritech startup FarMart, which joined the network in September of the previous year.
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