Otipy, the once-celebrated community group buying platform that connected consumers directly with fresh farm produce and daily essentials, has ceased operations without prior notice, sending shockwaves across its customer base, service partners, and employee network. The abrupt shutdown has triggered a flood of complaints, with many users reporting stuck wallet balances, unpaid dues, and a lack of official communication from the company.
Founded by Varun Khurana and operating under parent company Crofarm Agriproducts, Otipy was widely regarded as a disruptor in the farm-to-consumer supply chain. The platform enabled community resellers to aggregate orders and deliver fresh produce at competitive prices by streamlining logistics between farmers and end consumers. It gained popularity for its promise of quality, affordability, and direct-from-farm sourcing.
In 2022, Otipy raised $32 million (approximately Rs 235 crore) in a Series B funding round led by WestBridge Capital, with participation from existing investors SIG and Omidyar Network India. This round followed a $10.2 million funding just six months earlier, involving SIG, Omidyar Network India, Inflection Point Ventures (IPV), and Pravega Ventures.
Despite significant financial backing, Otipy struggled to sustain its momentum. The company reported a 56% increase in its revenue from operations to Rs 96.43 crore in FY23, up from Rs 61.84 crore in FY22. However, losses also mounted — rising to Rs 100 crore in FY23, a 49% increase from Rs 67.29 crore the previous year.
Signs of internal strain surfaced in recent months. According to sources familiar with the situation, the startup laid off nearly 300 employees across functions such as software development, marketing, and fleet operations.
While the company has not yet issued an official statement, the development was first reported by Inc42. In the meantime, the silence from Otipy’s leadership has left affected stakeholders scrambling for clarity and compensation.
Disgruntled customers and delivery partners have turned to LinkedIn and other social platforms to air their grievances. Many users report that wallet balances — in some cases amounting to several thousand rupees — remain frozen, with no communication from Otipy regarding refunds.
One LinkedIn post highlighted the growing trust deficit: “It’s a matter of trust and accountability,” the post read, urging the company’s leadership to initiate prompt refunds.
Service partners, too, claim they are owed payments for several weeks of work. One delivery partner appealed directly to the company, writing: “We request the Otipy management to please clear all pending dues for the last 3 weeks. There has been no official communication from the company, leaving many of us in confusion and financial stress.”
Otipy’s downfall echoes the broader struggles of India’s agritech marketplaces. Once hailed as a transformative force poised to replace traditional mandis, many of these platforms have faltered under the weight of high operational costs, farmer mistrust, and intense competition from established distribution networks and corporate giants. The funding euphoria of 2021 has since tapered, leading to the closure of several players in the segment, including Greenikk and ReshaMandi.
As of now, Otipy has yet to comment on the shutdown or address the concerns of its stakeholders. This story will be updated as and when the company issues a response.
Feature Your Startup on StartupbyDOC