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Otipy pitch deck

Otipy is India's fastest growing community group buying platform for fresh and grocery commerce. It addresses key issues with existing online fresh produce platforms such as inconsistent quality, high logistics costs, and high customer acquisition costs. Otipy partners with community leaders who facilitate sales, delivery and after-sales service in their communities, providing a more efficient distribution model than direct-to-customer delivery. Since launching in April 2020, Otipy has expanded its product catalog and daily tonnage while executing through macro supply shocks, and aims to build an alternative grocery distribution pipeline across India.

Technology◦
India’s Fastest Growing Community Group Buying (CGB) for Fresh and Grocery Commerce
The pandemic has forever changed the grocery industry, breeding new unicorns around the world Market Cap $10.4 Bn (Jan 2021) Valuation $1.2 Bn (Nov 2021) $300 Mn (Jul 21) at $12 Bn valuation Xingsheng $750 Mn financing (Mar 21) Community group buying (CGB) Mega warehouse to home delivery $950 Mn (Sep 21) at $3.1 Bn valuation $265 Mn (Mar 21) at $39 Bn valuation $550 Mn (Jun 21) at $7.5 Bn valuation Optimized for both Quality & Cost Valuation $120 Mn (Dec 21) Optimized for Cost On-demand delivery Optimized for Convenience Valuation $1.5 Bn (Apr 2020)
India’s $573B grocery market dominated by traditional market, but it is fast changing Source: Redseer Consulting Online contribution is still small, but the fastest growing Grocery is the most fundamental and the biggest Indian household spending $573 Bn Indian Grocery Market Source: BCG Health Clothing & Footwear Other Goods & Services Transport & Communication Housing & Household Products Food, Beverages % where Indians buy groceries 32 19 16 15 7 5 4 3 Indian Household Spending (%) Education Leisure
Winning fresh produce is our first step in winning the Indian grocery market Fresh produce is also by far one of the biggest food grocery categories Distribution of Indian Food Grocery Categories Source: Statista 26% 21% 17% 16% 14% 6% Fresh produce Staples Beverages Dairy FMCG Spices High Loyalty Higher frequency builds loyalty: Indians typically shop fresh produce on weekly basis Builds Trust Quality varies, hence trust is built toward the goods sellers High Margin Much higher than dry goods’ razor thin margin Fresh produce is much harder, but it builds trust and loyalty
Trust Issues Quality varies; customers are even more skeptical because they cannot touch and see, leading to high CAC Three key issues experienced by existing online fresh produce players Inconsistent Quality Complex value chain, just-in- time processing, and temperature changes during logistics lead to reduced freshness High Logistics Cost High frequency but low ticket items make last mile logistic very expensive
Next morning, Otipy delivers to CLs in bulk Customer clicks the link and orders directly before 11pm CLs deliver orders to customers Put digital marketing High CAC Delivers directly to customers High logistics cost CLs facilitate after sales service & pursue churned customers No one maintains customers Low retention, low LTV Otipy creates app for consumers and CLs CLs send links to download the app to their contacts in WhatsApp Existing Direct B2C E-groceries Sales Delivery After Sales 2 1 3 2 1 3 4 5 Community Leader (CL) Sales & Delivery Commission 6% to 10% We experimented with several schemes to learn the most efficient and scalable models CL-to-customer delivery is more efficient than direct delivery to customers.
O·Ti·Py is building an alternative distribution pipe Increasing velocity as measured by throughput Increasing width as evidenced by category diffusion & adoption Onion Tomato Potato … Non grocery … 0 10 20 30 40 50 60 70 80 90 100 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Daily average tonnage (tons)
Our team has built a culture that executes; driven to solve India’s complex grocery supply chain Varun Khurana Founder and CEO 3X Entrepreneur, 2X Exits Himanshu Rajput Founding Engineer, SVP - Technology Vikas Bothra Founding Member, VP – Finance Umesh Kumar Founding Member, SVP – Supply Chain COVID-19 2nd wave COVID-19 nationwide lockdown Farmers protests Undeterred by macro-supply shocks and black swan events Apr 2020 Sep 2020 Apr 2021 Accelerating growth albeit higher competitive intensity + + + Amresh Kumar Chief Product Officer Deepak Tewari VP – Sourcing Sourabh Maity VP – Operations