Latest news with #Otipy
India.com
26-05-2025
- Business
- India.com
Another startup shuts down due to quick commerce, 300 employees lose jobs, the startup was..., business was...
(Representational image/ New Delhi: The grocery startup Otipy in Delhi-NCR has suddenly shut down its operations. This information has emerged from media reports. However, the company has not yet issued any official statement regarding this. Neither has the company commented on the reports of its business closure. According to media reports, Otipy's founder and CEO Varun Khurana himself informed the employees about this during a town hall meeting. The company employs around 300 workers, whose livelihoods may be in jeopardy. Additionally, the company's delivery partners may also face difficulties. The company's app has also stopped functioning. It shows a message stating that there is no service in this area, no matter which location is entered. Quick commerce the reason? Quick commerce companies have completely transformed the market by offering delivery within 10 minutes. This has not only impacted scheduled delivery models like Otipy's but has also affected the sales of traditional grocery stores. This is considered the biggest reason behind Otipy's closure. B2B2C model Otipy operated on a B2B2C model, where it sourced fresh fruits and vegetables directly from farmers and delivered them to customers through community resellers. The company started in June 2020 as a subsidiary of Crofarm Agriproducts. Otipy's business was running in Delhi-NCR and Mumbai. It is worth noting that the company had raised nearly $44 million in funding so far, with $32 million coming from WestBridge Capital and other investors in 2022. Recently, the company also took a loan of $2 million from Nuvama Asset Management. Despite increasing revenue, the company reported losses. Otipy's revenue in FY24 was Rs 164 crores, up from Rs 115 crores the previous year. However, the company was still delaying payments to employees and vendors. Otipy's closure indicates that significant changes are occurring in the online grocery segment. On the other hand, the quick commerce sector has seen tremendous growth. According to a report by Blume Ventures, this market grew from $300 million in FY22 to $7.1 billion in FY25.
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
