Agritech Startup Otipy Shuts Operations Amid Cash Crunch

Otipy, a farm-to-fork vegetable delivery startup based in Delhi NCR, shut down its operations last week, as per media reports. The company closed on Saturday (May 17), affecting around 300 employees.

In a townhall that day, cofounder and CEO Varun Khurana told the team that the business could no longer continue and advised them to start looking for other opportunities.

Read also- KSKT Secures $1.3 Mn In Equity And Debt Round

The shutdown has raised concerns about unpaid bills, frozen wallet balances, and no clear communication from the company.

About Otipy 

Founded in 2020 by Varun Khurana, Otipy was run by its parent company, Crofarm Agriproducts, and was known for bringing new ideas to the farm-to-consumer supply chain. 

It used community resellers to encourage group buying, offering fresh produce at good prices by making delivery from farmers to city customers more efficient.

In 2022, Otipy raised $32 million (around ₹235 crore) in Series B funding led by WestBridge Capital, along with support from earlier investors SIG and Omidyar Network India. Just six months before that, it had raised $10.2 million from SIG, Omidyar Network India, IPV, and Pravega Ventures.

Despite having strong funding, Otipy started facing problems in recent months. Sources say the company laid off nearly 300 employees from different teams, including software, marketing and delivery operations.

Startup Funding News: Your Gateway to Every Funding Update.

Latest Startup News: Stay updated with the latest startup news and trends. Your go-to source for startup ecosystem updates.

Startup Stories: Discover inspiring tales of startups overcoming challenges, and achieving success.