Otipy Shuts Down Amid Financial Struggles, Leaves 300 Jobless
Delhi NCR-based farm-to-fork startup Otipy ceased operations on May 17, leaving nearly 300 employees jobless. During a town hall the same day, cofounder and CEO Varun Khurana informed staff that the company could no longer sustain its operations and encouraged them to seek new opportunities.
“It felt like the ground slipped beneath our feet,” a former employee said, recounting the abrupt announcement.
The company has reportedly not paid salaries for the past 1.5 months, and Khurana mentioned that Otipy will attempt to liquidate assets to clear outstanding dues. Vendors have also complained about unpaid bills, some dating back several months, and claim communication from the founders dried up in recent months.
Customers were also notified about the closure, with refunds for wallet balances promised within 60 to 90 days.
Founded in 2020 by Varun Khurana and Prashant Jain, Otipy—operated under parent company Crofarm Agriproducts—functioned as a B2B2C platform delivering fresh vegetables, fruits, dairy, and groceries to consumers’ doorsteps.
The closure comes just months after the startup began piloting electric carts in Gurugram, aiming to expand across Delhi NCR and Mumbai with 5,000–7,000 carts by 2026.
The primary reason behind the shutdown appears to be a failed funding attempt. Otipy was reportedly looking to raise $10 million in an extended Series B round, but there’s no confirmation on whether it secured the funds.
Previously, Otipy had raised a total of $44 million, including a $32 million Series B round in March 2022 led by WestBridge Capital, with participation from SIG and Omidyar Network.
In FY24, Otipy reported INR 160 Cr in revenue (a 68% rise from FY23) and reduced its losses by 28% to INR 52 Cr. The news follows a pattern—Fraazo, another WestBridge-backed vegetable delivery startup, had also shut down in 2022.
