Latest news with #IndusValley2025
Time of India
23-05-2025
- Business
- Time of India
Subscription-based grocery provider Otipy shuts shop; impacts 300 employees
Subscription-based grocery provider Otipy shut operations last week, impacting around 300 employees in addition to gig workers, including delivery partners , said people aware of the development. Founder and CEO Varun Khurana is understood to have told the company's employees about the decision last week at a townhall meeting. The WestBridge Capital-backed startup has reportedly withheld salary payments to employees as well as delayed payments to vendors. This development comes amid a downturn for grocery subscription services, which have struggled since the rise of quick commerce platforms. The rapid 10-minute delivery model has also impacted sales at traditional kirana stores. It raised around a total of $44 million in equity and debt, as per data intelligence platform Tracxn. Its last financing was a $2 million debt by Nuvama Asset Management. Khurana did not respond to text messages seeking comment. Live Events Founded in June 2020, the Delhi-NCR based business-to-business-to-consumer (B2B2C) startup was set up as a subsidiary of Khurana's agritech firm Crofarm India. It connected end consumers to farmers via a community of resellers who handled the last-mile delivery of fruits and vegetables operating in Mumbai and Delhi-NCR. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories As per Tracxn, the company generated a revenue of around Rs 164 crore in FY24, up from Rs 115 crore a year ago. The development was first reported by Inc42. Due to challenges in the grocery subscription model because of the rise in quick commerce, BBdaily, the subscription service by Tata Digital-backed firm BigBasket, which used to run as a separate app was merged into the main BigBasket app in September last year. However, direct-to-consumer (D2C) fresh foods brand Country Delight, which offers direct-to-home delivery of fresh food essentials like milk, ghee, paneer, fruits, and vegetables, continues to operate under a daily subscription model. Meanwhile, the quick commerce industry has grown to $ 7.1 billion in FY25 from $300 million in FY22, as per the Indus Valley 2025 report by venture capital firm Blume Ventures. Otipy is the latest among startups that have shut operations. Insurtech startup Kenko Health , upskilling and job finding platform Bluelearn , social media app Koo , artificial intelligence-led software startup Nintee and spiritual tech startup My Tirth India , sales software provider for product-led companies Toplyne have folded up over the past few months
Yahoo
25-02-2025
- Business
- Yahoo
India's quick-commerce sector may struggle to maintain current growth, Blume Venture's report says
(Reuters) - India's booming quick-commerce sector may struggle to maintain its current pace of growth as expansion beyond major cities remains limited and competition from larger e-commerce players intensifies, according to a report by Blume Ventures. These companies deliver groceries to electronics within minutes and their market share has grown to $7.1 billion in fiscal year 2025 from just $300 million in 2022, the venture capital firm's Indus Valley 2025 report said. India's "fastest growing industry segment ever", dominated by the likes of Zomato-owned Blinkit, Zepto and Swiggy Instamart, logged a 24-fold increase in gross order value (GOV) in the same period, it said. However, the segment will soon see its monthly transacting user (MTU) growth tapering, much like the country's ride-share, food delivery and e-commerce sectors before, the report warned. Moreover, the quick-commerce firms face stiff competition from large e-commerce platforms such as Walmart's Flipkart, Amazon and Reliance, who are preparing to launch their own quick-commerce operations. "… while it is not guaranteed they will be able to counter quick-commerce players, the increased competition will have some impact on the industry profit pool," the report said. Additionally, the expanding sector will likely start to affect the local grocery ecosystem and attract regulatory measures to check its growth, the report said. Earlier this month, TVS Capital Funds Chairman Gopal Srinivasan in an interview to Reuters said that India's quick-commerce frenzy is a "passing fad" and unsustainable in the long run. Blume Ventures was one of the earliest backers of crisis-laden quick-commerce firm Dunzo, which is reportedly on the brink of shutdown after a spate of layoffs, founder exits and unpaid vendor dues. Sign in to access your portfolio
Reuters
25-02-2025
- Business
- Reuters
India's quick-commerce sector may struggle to maintain current growth, Blume Venture's report says
Feb 25 (Reuters) - India's booming quick-commerce sector may struggle to maintain its current pace of growth as expansion beyond major cities remains limited and competition from larger e-commerce players intensifies, according to a report by Blume Ventures. These companies deliver groceries to electronics within minutes and their market share has grown to $7.1 billion in fiscal year 2025 from just $300 million in 2022, the venture capital firm's Indus Valley 2025 report said. India's "fastest growing industry segment ever", dominated by the likes of Zomato ( opens new tab -owned Blinkit, Zepto and Swiggy ( opens new tab Instamart, logged a 24-fold increase in gross order value (GOV) in the same period, it said. However, the segment will soon see its monthly transacting user (MTU) growth tapering, much like the country's ride-share, food delivery and e-commerce sectors before, the report warned. Moreover, the quick-commerce firms face stiff competition from large e-commerce platforms such as Walmart's (WMT.N), opens new tab Flipkart, Amazon (AMZN.O), opens new tab and Reliance ( opens new tab, who are preparing to launch their own quick-commerce operations. "… while it is not guaranteed they will be able to counter quick-commerce players, the increased competition will have some impact on the industry profit pool," the report said. Additionally, the expanding sector will likely start to affect the local grocery ecosystem and attract regulatory measures to check its growth, the report said. Earlier this month, TVS Capital Funds Chairman Gopal Srinivasan in an interview to Reuters said that India's quick-commerce frenzy is a "passing fad" and unsustainable in the long run. Blume Ventures was one of the earliest backers of crisis-laden quick-commerce firm Dunzo, which is reportedly, opens new tab on the brink of shutdown after a spate of layoffs, founder exits and unpaid vendor dues.
