Chennai-based agritech startup WayCool Foods and Products has raised $7.8 Mn in debt funding from Samunnati, RBL Bank and InnoVen Capital. The company will use this funding to meet its working capital needs and to boost automation in the existing distribution centres and warehouses.
WayCool Foods’ CFO Chinna Pardhasaradhi said that the latest debt round will complete all capital requirements for the company’s annual business plan. The funding will also be used to “support select new lines of growth and build related physical as well as digital assets.” .
The company plans to achieve 70% digital and mechanical automation across all distribution units by mid-2021, which will help the company improve its process flow, efficiency and eliminate error-prone activities.
CEO Karthik Jayaraman added, “Samunnati and InnoVen capital have been our long-term partners in growth, and the present funding lines are a natural evolution of this partnership. We welcome RBL Bank to our platform. The innovative instruments that we are developing in partnership with RBL Bank will free the business from working capital as a growth limiter.”
Founded in July 2015 by Jayaraman and Sanjay Dasari, WayCool Foods is an omnichannel fresh produce distribution company. It distributes farm-sourced fruits, vegetables and other products to local shops and modern retail outlets.
The company currently distributes 250 tonnes of products — produce, staples and dairy serving — daily, across its distribution channels to over 8K clients. The company sources its products from 50K farmers across 50 regions in India.
WayCool has raised about $70.6 Mn funding from investors like Netherland development finance company FMO Entrepreneurial Development Bank, Lightbox, LGT Lightstone, Sakal Media Group and Aspada.
It last raised $5.5 Mn in debt financing through US International Development Finance Corporation (DFC) through IndusInd Bank’s impact investment division.
The agri supply chain startup WayCool competes with Tamil Nadu-based RuralBasket and Bengaluru-based Ninjacart. Recently, RuralBasket raised $5 Mn funding from Nativelead Foundation to kick start its expansion plans in Tamil Nadu. The company is looking to expand its footprint across the state by scaling its operations to 22 retail outlets by 2022.