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Exclusive: BharatAgri shuts down operations amid funding crunch

EntrackrEntrackr · 4d ago
Exclusive: BharatAgri shuts down operations amid funding crunch
Medial

**Exclusive: BharatAgri shuts down operations amid funding crunch** Agritech startup BharatAgri has shut down operations after failing to secure new funding and sustain its business amid mounting losses, Entrackr has learned from multiple sources. “Most of the team was let go, and operations have been winding down over the past few weeks,” said one of the sources requesting anonymity. “The company had been struggling to raise new capital for several months, and the management had no option but to gradually scale down operations.” Founded in 2017 by Siddharth Dialani and Sai Gole, BharatAgri offered AI-led farm advisory and agri-input e-commerce services to small and mid-sized farmers across India. Despite early traction and over a million registered users, the company struggled to achieve operating profitability. According to the company’s FY24 filings with the Registrar of Companies, BharatAgri’s operating revenue stood at Rs 5.37 crore, a marginal decline from Rs 5.65 crore in FY23. Losses, however, widened to Rs 22.04 crore in FY24 from Rs 17.89 crore a year earlier. Its total expenses rose to nearly Rs 27 crore, largely steered by employee costs and marketing spends. BharatAgri had raised around $6.5 million in September 2021 and another $6 million in extended Series A funding in October 2023 from Arkam Ventures, with participation from existing investors India Quotient and Omnivore. However, the company was unable to close its next round amid a slowdown in agri-focused investments. According to sources, the firm couldn’t grow much despite early traction. “BharatAgri’s growth slowed down over the past year. High customer acquisition costs and low repeat orders made it difficult to keep the business running,” said the second source, who also requested anonymity. The development comes at a time when India’s agritech sector is going through one of its toughest fundraising phases in recent years. As per data compiled by Entrackr, agritech funding, which peaked in 2022, has seen a sharp decline since then. Indian agritech startups raised $802 million in 2022, but funding plunged 78% to $178 million in 2023 and fell further to $96 million in the first half of 2025. BharatAgri will join the likes of Fraazo, Otipy, Deep Rooted, and ReshaMandi that shut operations even after securing substantial funding. The shutdown reflects the broader pressure on agritech startups that have struggled to demonstrate consistent margins despite growing farmer adoption. Investors have increasingly shifted focus toward downstream agri-supply chains and B2B input distribution models.

Otipy raises $2 Mn in venture debt from Nuvama

EntrackrEntrackr · 8m ago
Otipy raises $2 Mn in venture debt from Nuvama
Medial

Otipy, a farm-to-fork company, has raised $2 million in venture debt from Nuvama Asset Management Limited. This raise comes ahead of its $10 million equity round as reported by Entrackr earlier. Otipy will use these funds for general corporate purposes. Otipy operates a farm-to-fork delivery model by procuring directly from farmers and delivering fresh produce to consumers every morning. Currently, it operates in Delhi-NCR and Mumbai, with plans to launch in Hyderabad, Bengaluru, and Chennai. The Varun Khurana-led company has raised $46 million to date, including its $32 million Series B round led by Westbridge Capital in 2022. According to the startup data intelligence platform TheKredible, SIG Global is the largest external stakeholder in the firm, followed by WestBridge Capital. Recently, Otipy introduced electric carts in Gurugram as part of a pilot project to sell fruits and vegetables offline. The firm plans to organize the pushcarts through a franchise model and expand its services to other cities, including Mumbai. For the fiscal year ending in March 2024 (FY24), Otipy claims to register Rs 175 crore in topline.

Otipy posts 50% GMV growth in FY24; losses down by 21%

EntrackrEntrackr · 1y ago
Otipy posts 50% GMV growth in FY24; losses down by 21%
Medial

Milkbasket started subscription commerce in India but it appears that Westbridge-backed Otipy is championing the concept with its farm-to-fork model wherein it delivers ordered items the next morning. The company, which offers fruits, vegetables, dairy and bakery products along with a subscription option, claims over 50% growth in its GMV in the fiscal year ending March 2024. Otipy also reduced losses by 21% during the same period, its founder and chief executive officer Varun Khurana told Entrackr in an interview. “We did Rs 115 crore in gross revenue in FY23 and unaudited numbers show that our topline will stay near Rs 175 crore in FY24,” Khurana said. Otipy had a gross revenue of Rs 115 crore in FY23 which includes Rs 96 crore of operating revenue, Rs 11 crore of discount offered, and other income Rs 8 crore. Fruits and vegetables form 70% of the firm’s total collection while groceries and dairy products contributed 20% and 10%, respectively. According to Khurana, the cost of procurement formed 70% of its total expenditure. “Our total expenses including employee benefits and logistics stood at around Rs 245 crore in FY24,” he said. Otipy claims that it fulfills 8 lakh orders on a monthly basis, and is witnessing 10% month-on-month growth. Khurana disclosed that the average order value hovers in the range of Rs 270, adding that an fulfilment cost of Rs 40 per order allows the company “to operate profitably even at low AOVs of Rs 270.” While Otipy has been operating in Delhi (NCR) and Mumbai for some time, Khurana outlined that the firm plans to expand its footprint into Bengaluru and Hyderabad during the second half of 2024. “We stayed in the two metros for several years as we wanted to perfect the model, unit economics and there has been no dearth of depth in NCR and Mumbai. Now that the company is making money at an order level, we plan further expansion” said Khurana while explaining the rationale behind gradual expansion. Backed by the likes of Westbridge Capital, SIG India, Omidyar Network, Otipy has raised $44 million across several rounds including a $32 million Series B round. “Strong focus on bringing the losses down throughout the last fiscal year helped us to cut losses by 21% to Rs 71 crore in FY23,” said Khurana. Khurana claims that Otipy has hit an average monthly revenue run rate (ARR) of Rs 20 crore. “We are targeting to touch Rs 500 crore in gross revenue in FY25 and hit positive ebitda at a monthly level,” said Khurana. Otipy has been a relatively quiet success story, building up strengths even as larger, flashier rivals have floundered. The firm has built up a strong base of users today, and the promise of delivering fresh produce has withstood challenges along the way. We are not sure about the actual performance of the categories beyond fresh fruits and vegetables, as Otipy has frequently gone with smaller brands in the space to support margins. However, it risks diluting its own core brand promise of fresh produce delivery if it goes too far down that path and associates with produce that does not meet the same promise in fact. The firm is likely to find expansion easier now, thanks to its learnings. However, both East India and South India, are tough nuts to crack due to elevated competition and the different nature of the markets, from being more price sensitive (East) to brand savvy (South).

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