Otipy, one of the leading farm-to-fork companies, has finally made a big push toward modernising the sale of fresh fruits and vegetables. It has started testing electric carts in Gurugram. This move is to strengthen offline sales while keeping sustainability and convenience in mind for the consumers. For the last 5-6 months, Otipy has been experimenting with approx 15 electric carts in the city. Based on the feedback, the company is ready to expand this fleet in the near future.
PC: Agriculture Post
Otipy does not sell only fruits and vegetables; they are going to add daily essentials like milk and bread to their product portfolio. This will enable them to reach a wider audience in terms of consumer needs and make the shopping experience for those looking for fresh produce and daily essentials more fulfilling.
The carts will operate at certain times: morning, from 6:30 AM to 10 AM, and in the evening, from 6:30 PM to 10 PM. It is designed such that maximum visibility and accessibility to the consumer can be achieved to buy fresh products when they shop for other essentials at peak times.
Otipy aims to deploy the electric carts under a franchise model through which potential entrepreneurs can run their carts and earn money. The cart reportedly earns between ₹8,000 to ₹10,000 in daily sales, with most of them operating profitably. Franchisees can expect to earn between ₹30,000 to ₹35,000 per month, which makes it a lucrative business venture for people interested in venturing into the fresh produce market.
This approach distinguishes Otipy in a space where many companies are turning to fast commerce models. Competition, like BigBasket, have transitioned into a 10-15 minute delivery model. Meanwhile, Otipy still follows the old-school but innovative model of direct contact between the farmers and consumers.
Otipy is planning to roll out 5,000 to 7,000 electric carts across the Delhi NCR and Mumbai regions by 2026. This expansion would serve as part of a broader plan of the company to strengthen its presence in the market and increase the accessibility of fresh produce to the urban customers.
Currently, Otipy is running a farm-to-fork delivery model, directly sourcing from farmers and ensuring that fresh produce reaches the consumers every morning. The company is already operational in key metropolitan cities like Delhi-NCR and Mumbai, and it plans to launch operations in Hyderabad, Bengaluru, and Chennai soon.
Founded by Varun Khurana, Otipy has raised $44 million so far, including a $32 million Series B round led by Westbridge Capital in 2022. The company has also been in talks to raise an additional $10 million round from new and existing investors. For the fiscal year ending March 2024 (FY24), Otipy expects to reach a topline revenue of ₹175 crore, and by FY25, it expects to touch ₹500 crore in gross revenue with EBITDA profitability.
Otipy’s electric carts pilot program is another forward-thinking method of fresh produce distribution. Not only does this company want to make healthy foods more accessible to people, but it also enables sustainable practices within urban settings. As Otipy continues to refine its offerings and expand its reach, it’s well-positioned to play an important role in the changing Indian landscape of farm-to-fork delivery.
