Delhi-NCR-based agritech startup Otipy has ceased operations as of May 17, 2025, impacting approximately 300 employees and numerous gig workers. The shutdown follows the company’s inability to secure additional funding, despite having raised a total of $44 million in previous investment rounds .
Sudden Closure and Employee ImpactMedial+2Data Insights Market+2Medial+2
Employees were informed about the shutdown during a town hall meeting led by CEO Varun Khurana. The abrupt decision left many staff members and delivery partners without prior notice, leading to immediate job losses .Medial
Financial Struggles and Unpaid Dues
Reports indicate that Otipy had not disbursed employee salaries for the past one and a half months. Additionally, several vendors have reported pending payments dating back several months. The company has communicated plans to liquidate assets to settle outstanding dues .
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Otipy has assured customers that refunds for any outstanding wallet balances will be processed within 60 to 90 days. However, the sudden cessation of services has caused inconvenience to regular users who relied on the platform for fresh produce deliveries .
Background and Previous Initiatives
Founded in 2020 by Varun Khurana and Prashant Jain, Otipy operated as a B2B2C platform connecting farmers to consumers through a network of resellers. The startup had ambitious plans, including the deployment of electric carts for offline sales in Gurugram and expansion into Mumbai and Delhi NCR by 2026
Industry Challenges and Market Dynamics
Otipy’s shutdown reflects broader challenges in the agritech and online grocery delivery sectors, where companies face intense competition, high operational costs, and the necessity for continuous funding to sustain growth and operations.
