In this exclusive interview, we delve into Otipy's transformative journey and its mission to bridge the gap between farmers and consumers in the agricultural space. Otipy's unique B2B2C model ensures the delivery of the freshest farm produce directly to consumers' doorsteps within 12 hours, revolutionizing the way we access and consume fresh fruits, vegetables, dairy, and groceries.
Varun Khurana, Founder & CEO, Otipy shares, insights
1. Could you provide an overview of Otipy's journey and the range of services it offers?
Our journey began with the launch of a B2B model, Crofarm, in 2016. Its primary goal was to enhance the supply chain for fresh fruits and vegetables. In 2020, it transformed into Otipy, adopting a B2B2C model with the objective of delivering the freshest farm produce directly to consumers while minimizing supply chain wastage.
Today, Otipy efficiently delivers handpicked farm-fresh vegetables and fruits within 12 hours to consumers' doorsteps through reseller partners. This innovative approach connects farmers directly with consumers via Otipy’s app. We have now successfully served over one million customers, fulfilling more than 10 million orders, and boasting over 3 million app downloads.
In addition to farm-fresh produce, Otipy's product range has expanded to include dairy and grocerieswith over 1500+ FMCG products. Otipy sells farmfresh milk under its “Farm Tale” brand. Additionally, Otipy also sells dry agri commodities like pulses, cooking oils etc. under the “One Farm” brand..
2. What specific problem is Otipy addressing, and how is it creating disruption within this particular industry or space?
We are addressing several critical issues in the agricultural industry. Firstly, we tackle the problem of people consuming stored and unhealthy fruits and vegetables by delivering fresh produce directly from farms to consumers' doorsteps within 12 hours, eliminating the need for storage.
Additionally, we are disrupting the industry by significantly reducing food wastage. While the fruits and vegetables supply chain typically experiencesover 40% wastage, we at Otipy have managed to cut this down to just 3% through innovative techniques. Firstly, our AI and ML-based prediction model that anticipates demand accurately, ensures that only the necessary quantities are procured. Additionally, we also use a pre-cooling technique at farm-gate to extend the shelf life of produce.
Moreover, we work closely with farmers, providing guidance on harvesting practices and aligning them with consumer expectations to maximize their incomes. This approach not only minimizes wastage but also benefits consumers by offering competitive prices. Otipy's holistic approach is driving positive change and efficiency within the industry.
3. How is Otipy benefiting small farmers and end consumers?
Otipy is making a significant impact on both small farmers and end consumers. By establishing a vast network of over 20,000 farmers and collaborating with 100 Farmer Producer Organizations (FPOs) across 20+ states in India, Otipy is fostering broader and more transparent markets for farmers. Through its innovative AI-powered platform, the company empowers small farmers in multiple ways.
Otipy's unique prediction model, driven by machine learning algorithms, accurately forecasts demand, providing valuable insights to farmers for crop planning and harvesting cycles. This ensures farmers make informed decisions, mitigating the demand and supply fluctuations often seen in traditional markets. The platform also helps farmers access quality seeds, fertilizers, and financing when needed, optimizing their crop production for better yields and profitability.
For consumers, we provide the freshest produce at reasonable prices. By streamlining supply chains and leveraging technology to reduce wastage, we are able to pass on cost savings to consumers.
4. Please elaborate on your business model and what sets you apart from your competitors?
Otipy's business model stands out with its direct procurement from farmers based on accurate demand predictions, cutting out middlemen for fair farmer payments and competitive prices. The user-friendly e-commerce app connects consumers directly with quality-sourced produce, eliminating the need for physical stores and reducing costs.
In contrast to quick commerce models centered on convenience but with high operational costs, Otipycaters to India's value-conscious market. Quick commerce often faces difficulties with fresh produce due to inventory stocking, resulting in degradation of the quality of produce. On the other hand, Otipy does not stock produce and ensures that produce reaches consumers within 12 hours of harvest, ensuring the freshest produce at the best price. This approach aligns with Indian consumers' value-oriented preferences and ensures both farmer empowerment and customer satisfaction."
5. What exciting developments or plans does Otipyhave for the future?
We aim to strengthen our presence in existing cities including Delhi/NCR and Mumbai while expanding into other Tier 1 cities such as Bangalore and Hyderabad by next year. Additionally, we'll continue to diversify our product categories based on customer demand, ensuring we meet evolving consumer needs.