Chennai-based agritech startup WayCool has raised INR 100 crore ($11.9 million) in debt funding from Grand Anicut.
Details͏͏ of͏͏ the͏͏ Capital͏͏ Infusion:
The͏͏ board͏͏ has͏͏ approved͏͏ a͏͏ capital͏͏ infusion͏͏ of͏͏ INR͏͏ 100͏͏ crore͏͏ through͏͏ 1,000͏͏ Series͏͏ B6͏͏ debentures,͏͏ each͏͏ priced͏͏ at͏͏ INR͏͏ 10͏͏ lakh.͏͏ According͏͏ to͏͏ WayCool’s͏͏ RoC͏͏ filing,͏͏ these͏͏ debentures͏͏ carry͏͏ a͏͏ coupon͏͏ rate͏͏ of͏͏ 18%͏͏ per͏͏ annum͏͏ and͏͏ have͏͏ a͏͏ maturity͏͏ period͏͏ of͏͏ 18͏͏ months.
Utilisation͏͏ of͏͏ Funds:
WayCool͏͏ plans͏͏ to͏͏ utilise͏͏ the͏͏ new͏͏ capital͏͏ to͏͏ refinance͏͏ its͏͏ existing͏͏ borrowings͏͏ and͏͏ support͏͏ working͏͏ capital͏͏ needs.
Founded͏͏ in͏͏ 2015͏͏ by͏͏ Karthik͏͏ Jayaraman͏͏ and͏͏ Sanjay͏͏ Dasari,͏͏ WayCool͏͏ markets͏͏ food͏͏ products͏͏ under͏͏ seven͏͏ distinct͏͏ labels͏͏ and͏͏ provides͏͏ supply͏͏ chain͏͏ solutions.
This͏͏ comes͏͏ at͏͏ a͏͏ time͏͏ when͏͏ the͏͏ company͏͏ is͏͏ facing͏͏ challenges͏͏ in͏͏ raising͏͏ new͏͏ capital.
Workforce͏͏ Restructuring:
From͏͏ January͏͏ to͏͏ July͏͏ this͏͏ year,͏͏ WayCool͏͏ laid͏͏ off͏͏ 270͏͏ employees͏͏ as͏͏ part͏͏ of͏͏ its͏͏ initiative͏͏ to͏͏ streamline͏͏ operations͏͏ and͏͏ reduce͏͏ losses.
Additionally,͏͏ last͏͏ year,͏͏ the͏͏ company͏͏ reportedly͏͏ terminated͏͏ around͏͏ 300͏͏ employees.
Continue͏͏ Exploring:͏͏ WayCool Foods implements͏͏ second͏͏ wave͏͏ of͏͏ layoffs,͏͏ 70͏͏ employees͏͏ affected
Financial͏͏ Performance:
Notably,͏͏ the͏͏ agritech͏͏ startup͏͏ has͏͏ been͏͏ reporting͏͏ losses͏͏ lately,͏͏ with͏͏ its͏͏ net͏͏ losses͏͏ rising͏͏ by͏͏ 88.7%͏͏ to͏͏ INR͏͏ 685͏͏ crore͏͏ in͏͏ FY23,͏͏ up͏͏ from͏͏ INR͏͏ 363͏͏ crore͏͏ in͏͏ FY22.
In͏͏ FY23,͏͏ the͏͏ company’s͏͏ revenue͏͏ from͏͏ operations͏͏ reached͏͏ INR͏͏ 1,251͏͏ crore,͏͏ a͏͏ 62%͏͏ increase͏͏ from͏͏ INR͏͏ 772.3͏͏ crore͏͏ in͏͏ FY22.
Continue͏͏ Exploring:͏͏ WayCool Foods reports͏͏ 62%͏͏ revenue͏͏ growth͏͏ to͏͏ INR͏͏ 1,251͏͏ Cr͏͏ for͏͏ FY23;͏͏ net͏͏ loss͏͏ rises͏͏ 89%͏͏ to͏͏ INR͏͏ 685͏͏ Cr
To͏͏ date,͏͏ the͏͏ agritech͏͏ startup͏͏ has͏͏ raised͏͏ approximately͏͏ $300͏͏ million͏͏ and͏͏ counts͏͏ investors͏͏ such͏͏ as͏͏ Lightrock,͏͏ Lightbox,͏͏ Lightsmith,͏͏ 57͏͏ Stars,͏͏ and͏͏ FMO͏͏ among͏͏ its͏͏ backers.
WayCool͏͏ launched͏͏ its͏͏ FMCG͏͏ entity,͏͏ BrandsNext,͏͏ last͏͏ year,͏͏ which͏͏ includes͏͏ brands͏͏ like͏͏ Madhuram,͏͏ KITCHENji,͏͏ DeziFresh,͏͏ and͏͏ Freshey’s.
Continue͏͏ Exploring:͏͏ Agritech firm͏͏ WayCool sets͏͏ up͏͏ FMCG͏͏ arm͏͏ ‘BrandsNext’,͏͏ names͏͏ BP͏͏ Ravindran͏͏ as͏͏ CEO
Last͏͏ year,͏͏ it͏͏ was͏͏ reported͏͏ that͏͏ the͏͏ agritech͏͏ startup͏͏ was͏͏ in͏͏ talks͏͏ to͏͏ raise͏͏ approximately͏͏ $50–70͏͏ million͏͏ at͏͏ a͏͏ valuation͏͏ of͏͏ around͏͏ $900͏͏ million.͏͏ However,͏͏ it͏͏ was͏͏ unable͏͏ to͏͏ close͏͏ this͏͏ round͏͏ due͏͏ to͏͏ the͏͏ ongoing͏͏ funding͏͏ winter.
