Otipy, a social commerce platform, gets $10.2 million from SIG

Mumbai: 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 backed Inshorts and Mobile Premier League in India.

Founder Varun Khurana said the funds will be used to enter additional categories for perishable items, such as milk and bread, as well as expansion into other cities. Otipy sells groceries through a reseller model.

Omidyar Network India and existing investors IPV (Inflection Point Ventures), Pravega Ventures and Factor(e) Ventures also participated in the round.

The latest funding round of $10.2 million includes $2 million raised as venture debt from InnoVen Capital.

Founded in 2020, the company procures fresh produce from its network of farmers across the country and delivers it to consumers in less than 12 hours, the company claims.

The company is present in New Delhi and the national capital region and services about 8,000-10,000 orders a day, Khurana told ET, adding that unlike other social commerce and egrocer competitors, Otipy differentiates 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.”

The funding round comes as other social commerce platforms like Dealshare, CityMall and Trell have recently raised funds from investors, including Tiger Global and General Catalyst.

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Otipy has 5,000 community leaders who, according to Khuarana, can make up to a lakh selling groceries on the platform.

Khurana was previously the chief technology officer at e-grocer Grofers.



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