Otipy is looking to score big in the coming months as it has disclosed plans to raise $75 million (Rs 620 crore approximately) and clock a revenue of Rs 160-170 crore in FY23. Looking at its financial performance in FY22, the company seems to be on the right track as it managed to grow over two folds during the period.
Founded by Varun Khurana, Gurugram-based Otipy operates a farm-to-fork delivery model by procuring directly from farmers and delivering fresh produce to consumers. It connects consumers to farmers through a community of resellers, who earn a healthy commission while handling the last-mile delivery of fresh produce.
Otipy also works with more than 20,000 farmers along with over 1,000 partners onboard. Since 2020, it has fulfilled more than 10 million orders. The company claims it gets 25,000 orders daily on an average from consumers through its mobile app.
That said, Otipy’s gross revenue rose 2.4X to Rs 61.8 crore during the last fiscal year (FY22), the company’s consolidated financial statements with the RoC show. Its losses, however, jumped 3.3X to Rs 67.2 crore in the said period.
The procurement of agricultural produce emerged as the largest cost for Otipy, accounting for 36.8% of the total expenditure. As the scale grew, this cost ballooned 2.5X to Rs 48.53 crore in FY22. The expenditure on employee benefits surged nearly 3X to Rs 22.65 crore, while promotional expenses surged around 4X to Rs 21.1 crore during the same period.
The company also spent Rs 5.06 crore and Rs 4.9 crore as legal fees and packing material expenses, respectively, in FY22. In total, its expenses spiked 2.8X to Rs 132 crore in FY22 from Rs 46.5 crore in FY21.
Outpacing the topline growth, Otipy’s bottomline shot up by 3.3X and posted Rs 67.2 crore loss in FY22 in contrast to Rs 20.5 crore loss in the previous fiscal. On a unit level, Otipy spent Rs 2.14 to earn a rupee of operating revenue in FY22.
Otipy has raised around $44 million (Rs 335 crore respectively) to date. It includes a Series B round of $32 million in March 2022. The company is backed by investors such as WestBridge Capital, Susquehanna International Group (SIG) and Omidyar Network among others.