Social commerce platform Otipy has raised $10.2 million in a round of funding led by SIG. The funds will be used to add more categories such as perishable items including milk and bread, as well as expansion into other cities, said founder Varun Khurana.
The Series A funding includes existing investors such as IPV (Inflection Point Ventures), Pravega and Factor(e). Otipy had earlier raised $2 million from IPV in 2020.
Founded in 2020, Otipy procures over 2,500 tonnes of fresh produce from over 10,000 farmers across the country every month and delivers to consumers in less than 12 hours. The company said that the farm-to-fork delivery model optimises freshness. It uses proprietary demand prediction engines to determine little or no stocking of fresh produce.
“We see a strong product market fit with the Otipy model for consumers, community leaders and farmers. Additionally, fresh produce is a high repeat category resulting in high frequency of consumer orders. This new round of funding will support us in our future growth trajectory, adding additional categories on our supply chain making it more efficient and accelerate our mission of making fresh, nutritious food accessible to all. Fresh produce is a 35-40 per cent 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,” said founder and CEO Khurana.
Director of Investments at Omidyar, Madhav Tandan said, “Farmers partnering with Otipy earn up to 20 per cent more and are paid faster too. Their community leader delivery partners are also able to make sizeable additional incomes, in the range of tens of thousands rupees per month. This resonates with our focus on increasing value realisation for farmers and the ecosystem by enabling better access to markets and aggregation opportunities.”
SIG that has pumped in money in Otipy is known for backing platforms like Inshorts and Mobile Premiere League.
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