According to two people with knowledge of the situation told media that farm-to-fork company Otipy is expected to raise additional funding in an extended series B round from both new and current investors. The company will receive the new funding 28 months after raising $32 million in Series B funding in March 2022.
“A new investor along with existing ones are investing $10 million in Otipy,” said one of the sources requesting anonymity. “The company has received a term sheet and the deal is likely to get materialized soon.”
According to sources, the money will be used to expand Otipy’s reach and improve its operations in current cities. According to sources, it is now operational in Delhi (NCR) and Mumbai, but it may soon expand to Bengaluru and Hyderabad.
Otipy purchases fresh produce straight from farmers and delivers it to customers every morning using a farm-to-fork delivery model.
“The firm does Rs 20 crore gross merchandise value (GMV) every month with a Rs 3 crore burn. After establishing itself as a leader in fruits and vegetables, the firm plans to additionally focus on grocery. Otipy is also set to achieve EBITDA breakeven in FY25,” said another source.
With the $32 million Series B round led by Westbridge Capital in 2022, Otipy has raised $44 million in total funding to date. WestBridge Capital is the company’s second-largest external stakeholder, after SIG Global, according to the media.
Otipy has over 1,000 partners and over 20,000 farmers as supporters, according to the company’s website. From Rs 115 crore in FY23 to Rs 173 crore in FY24, the Gurugram-based company achieved a growth in scale of over 50%. Additionally, in the fiscal year that concluded in March 2024, its losses decreased by 21%.
