Otipy Introduces Electric Carts in Gurugram
Otipy, a company focused on farm-to-fork initiatives, has rolled out electric carts in Gurugram as part of a pilot programme aimed at selling fresh fruits and vegetables offline, according to sources familiar with the situation reported by Startup Superb.
Details of the Pilot Programme
- The company has been testing around 15 electric carts over the past 5 to 6 months.
- Feedback from this pilot will inform the deployment of more carts in the upcoming months.
- In addition to fruits and vegetables, Otipy intends to include essential items like milk and bread.
Operational Hours
The offline carts will operate at the following times:
- Morning: 6:30 am to 10 am
- Evening: 6:30 pm to 10 pm
Franchise Model and Revenue
Otipy plans to implement a franchise model for managing the carts. Currently, each cart generates daily sales between Rs 8,000 to 10,000 from fruits and vegetables, with many operating at a profit. A source noted that:
- Otipy aims to deploy between 5,000 to 7,000 carts by 2026 in Delhi NCR and Mumbai.
- Franchise operators can earn between Rs 30,000 to 35,000 per month.
Market Trends
This strategy is notable as many companies are shifting towards a quick commerce model. For example:
- BigBasket has transitioned from slot-based deliveries to a model guaranteeing delivery within 10 to 15 minutes.
- Country Delight has maintained slot-based deliveries while integrating a faster 10 to 15-minute delivery option.
About Otipy
Operating on a farm-to-fork basis, Otipy sources directly from farmers and delivers fresh produce to consumers each morning. Currently active in Delhi-NCR and Mumbai, the company has plans to expand into Hyderabad, Bengaluru, and Chennai.
Funding and Financial Performance
The company, led by Varun Khurana, has successfully raised $44 million to date, including a Series B round of $32 million led by Westbridge Capital in 2022. Sources from the startup data intelligence platform indicate that:
- SIG Global is Otipy’s largest external stakeholder, followed by WestBridge Capital.
- By mid-2024, Otipy is seeking to secure an additional $10 million from both new and existing investors.
Financial Goals
For the financial year ending March 2024 (FY24), Otipy anticipates achieving a topline of Rs 175 crore, with a target of reaching Rs 500 crore in gross revenue for FY25 along with achieving EBITDA profitability.