Farm-to-consumer startup Otipy shuts down; employees, customers seek clarity
Otipy laid off nearly 300 employees across departments, including software development, marketing, and fleet operations.
Otipy, a once-promising community group buying startup connecting consumers to fresh farm produce and daily essentials, has abruptly ceased operations after failing to close a crucial $10 million funding round.
An investor familiar with the matter said the lead backer Hero family office withdrew at the last minute, triggering a cash crunch.
The shutdown has sparked mounting concerns over unpaid dues, stuck wallet balances, and a lack of official communication from the company.
Founded by Varun Khurana, Otipy operated under parent company Crofarm Agriproducts and was widely seen as an innovator in the farm-to-consumer supply chain space. It enabled group buying through community resellers, promising fresh produce at competitive prices by streamlining logistics between farmers and urban customers.
In 2022, Otipy raised $32 million (approximately Rs 235 crore) in a Series B funding round led by WestBridge Capital, with participation from existing backers SIG and Omidyar Network India. This infusion followed a $10.2 million round just six months earlier, involving SIG, Omidyar Network India, IPV (Inflection Point Ventures), and Pravega Ventures.
Otipy, saw a 56% increase in its revenue from operations to Rs 96.43 crore for the financial year 2022-23 from Rs 61.84 crore in the previous year. Meanwhile, its losses widened to Rs 100 crore in FY23, up 49% from Rs 67.29 crore in FY22.
Despite this strong financial backing, the company began showing signs of strain in recent months. According to individuals familiar with the matter, Otipy laid off nearly 300 employees across departments, including software development, marketing, and fleet operations.
Otipy has not confirmed the development and the story will be updated with responses from the company. The development was first reported by Inc42.
Delivery partners and customers have since taken to LinkedIn and other platforms to voice their grievances. Customers reported that wallet balances running into thousands of rupees have not been refunded, with no updates provided by the company. One post called the situation "a matter of trust and accountability," urging Otipy’s leadership to initiate prompt refunds.
Service partners say they are owed payment for several weeks of work. “We request the Otipy management to please clear all pending dues for the last 3 weeks,” wrote one affected partner. “There has been no official communication from the company, leaving many of us in confusion and financial stress.”
India’s agritech marketplaces, once hailed as game-changers poised to replace traditional mandis, have struggled to scale sustainably. Despite a funding boom in 2021, the model faltered due to farmer mistrust, high operational costs, and tough competition from entrenched systems and corporate giants. With funding drying up and mounting losses, many platforms like Greenikk and ReshaMandi have shut down.
(The copy was updated with additional information.)
Edited by Jyoti Narayan