By sourcing fresh produce directly from the farm and reducing the number of intermediaries in the value chain, Otipy improves price realisation for farmers compared to alternate channels while also driving value at multiple levels in the farm-to-fork chain. Otipy distributes its products creatively through a reseller network, largely comprising women from middle and lower-income households, thereby creating a new source of income for these resellers.
By the time, a tomato finds its way into a dal in an Indian household, chances are it has exchanged hands at least five times. Once a tomato is harvested, it travels through mandis, store rooms of local aggregators and commission agents before finding its way to our dinner tables. Each stop along that tomato’s journey means an added a cost, in terms of money as well as time.
The greatest impact of this cost is borne by the primary producer the farmer who makes suboptimal revenues from their produce. The inefficiencies in the chain also affect resellers who face high investment costs of warehousing and transport as well as consumers, who do not get access to fresh, healthy produce at affordable costs.
Otipy is attempting to solve this supply chain conundrum with an innovative farm-to-fork fresh platform. Otipy procures fresh, high quality produce directly from farmers and transports it to their warehouse where it is sorted and packed. The orders are then picked up and delivered to the resellers who are responsible for doorstep delivery. The entire cycle takes 14-16 hours, a vast improvement over traditional channels in which it usually takes a couple of days at the very least.
The impact Otipy is creating across the value chain goes beyond just crunching delivery timelines or even delivering fresh produce.
By sourcing directly from farmers, Otipy helps them earn 10-20% higher incomes in comparison with traditional channels such as mandis. All this without the hassle of arranging logistics, finding buyers and negotiating prices. Farmers also receive timely payments, and additional support including guidance on what to grow according to market demand, the prevailing market prices and relevant agricultural best practices.
For resellers, who provide the last-mile logistics, Otipy provides a unique opportunity to generate income without big investments in working capital and retail spaces. Most of the resellers are women who come from low or middle-income households. These women, in turn, become ambassadors for Otipy. They build brand awareness in their network about Otipy, assisting potential users with signing up on the platform and even providing customer support.
For the end consumer, Otipy provides access to fresh produce directly from the farm, within 12-16 hours. With a shift in urban households towards sourcing fresh food, Otipy is well-poised by providing a ready, viable and convenient service for consumers who want to buy fresh, healthy fruits and vegetables without having to leave their homes.
With a demand-led approach and transparent supply chain, Otipy has been able to reduce wastage by 30-40% and has even solved some tough problems in the food and vegetables supply chain through multiple sourcing partners, quality checks, efficient sorting, packaging and delivery within a certain timeframe. At the end of each day, the company liquidates unsold stock through their B2B channel thereby reducing wastages even further.
By increasing income for the farmer, providing an additional source of livelihood to the resellers and giving the customer a higher quality of produce to consume, Otipy has demonstrated a scalable model to enable inclusion (through farmer reach) and depth (through value add for three stakeholders). We believe that Otipy’s vision of procuring from farmers and selling direct to the consumers across India will create strong positive impact on the ‘Next Half Billion’.