Social Commerce Platform Otipy Raises $10.2 Million Led By SIG & Others
Otipy, a social commerce platform for fresh produce, has raised $10.2 million (Rs 76 crore) in a Series A funding round led by SIG, which has previously invested in Inshorts and the Mobile Premier League in India.
The funds will be used to enter additional categories for perishable items, such as milk and bread, as well as expand into other cities, according to founder Varun Khurana. Otipy uses a reseller model to sell groceries.
The round was also attended by Omidyar Network India and existing investors IPV (Inflection Point Ventures), Pravega Ventures, and Factor(e) Ventures.
The most recent funding round of $10.2 million includes $2 million in venture debt raised from InnoVen Capital.
The company, which was founded in 2020, claims to procure fresh produce from its network of farmers across the country and deliver it to consumers in less than 12 hours.
According to Khurana, the company is present in New Delhi and the national capital region and services approximately 8,000-10,000 orders per day, adding that, unlike other social commerce and egrocer competitors, Otipy distinguishes itself by providing fresh produce directly from the source.
“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," Khurana said. “Fresh produce is a 35-40% 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.”
Other social commerce platforms, such as Dealshare, CityMall, and Trell, have recently raised funds from investors such as Tiger Global and General Catalyst.
According to Khuarana, Otipy has 5,000 community leaders who can earn up to a lakh selling groceries on the platform.
Khurana was previously the chief technology officer at Grofers, an e-commerce company.
The funds will be used to enter additional categories for perishable items, such as milk and bread, as well as expand into other cities, according to founder Varun Khurana. Otipy uses a reseller model to sell groceries.
The round was also attended by Omidyar Network India and existing investors IPV (Inflection Point Ventures), Pravega Ventures, and Factor(e) Ventures.
The most recent funding round of $10.2 million includes $2 million in venture debt raised from InnoVen Capital.
The company, which was founded in 2020, claims to procure fresh produce from its network of farmers across the country and deliver it to consumers in less than 12 hours.
According to Khurana, the company is present in New Delhi and the national capital region and services approximately 8,000-10,000 orders per day, adding that, unlike other social commerce and egrocer competitors, Otipy distinguishes itself by providing fresh produce directly from the source.
“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," Khurana said. “Fresh produce is a 35-40% 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.”
Other social commerce platforms, such as Dealshare, CityMall, and Trell, have recently raised funds from investors such as Tiger Global and General Catalyst.
According to Khuarana, Otipy has 5,000 community leaders who can earn up to a lakh selling groceries on the platform.
Khurana was previously the chief technology officer at Grofers, an e-commerce company.
