Exclusive: WayCool Fires 70 Employees In Second Restructuring Exercise WithIn A Year

Exclusive: WayCool Fires 70 Employees In Second Restructuring Exercise WithIn A Year

SUMMARY

The layoff exercise impacted employees across departments, including sales, research, marketing, and tech

Without disclosing the number of employees impacted, a WayCool spokesperson attributed the layoffs to rationalisation of warehouse footprint

In July last year, the agritech startup laid off around 300 employees in a bid to turn profitable

Chennai-based WayCool Foods fired at least 70 employees over the last month in what was the second layoff exercise at the agritech startup within a year, sources told Inc42.

The latest layoff exercise impacted employees across departments, including sales, research, marketing, and tech, the sources said.

The startup, which houses subsidiaries such as WayCool Censa, WayCool BrandNext, also shut its warehouses over the last month, they added.

The sources cited the startup’s failure to raise any new funding round in the last two years as the reason behind the restructuring exercise.

Responding to Inc42’s queries on the issue, a WayCool spokesperson confirmed the layoffs but did not disclose the number of employees impacted by the restructuring exercise.

“Over the past one year, WayCool foods has focused its investment behind its own brands, to capture the benefit of its efficient supply chain to the fullest. Our brands have achieved a significant scale. This enables us to build a direct, warehouse free supply chain from source to market. Hence, we have rationalised the warehouse footprint, resulting in some redundancies,” the spokesperson said in a statement.

The spokesperson claimed that this shift has helped the startup reduce its EBITDA loss by over 80% and it is now poised to turn EBITDA profitable in Q1 FY25.

“Indeed, several of our business units are already EBITDA positive for several months . We are, as we speak, wrapping up another round of funding and will continue to raise capital as required by the business,” the statement added.

WayCool launched its FMCG entity BrandsNext Last year, which houses brands such as Madhuram, KITCHENji, DeziFresh, and Freshey’s. 

It is important to note that WayCool also laid off around 300 employees in a restructuring exercise in July last year in a bid to turn profitable. While some of the employees resigned, several others were asked to put down their papers. 

It was reported last year that the agritech startup was in talks to raise around $50 Mn-$70 Mn at a valuation of around $900 Mn. However, it failed to close this round due to the ongoing funding winter. This forced WayCool to cut down its expenses to extend the runway.

WayCool has not yet filed its financial statements for FY23 with the Ministry of Corporate Affairs (MCA). As per reports, it has reportedly cut down its expenses by 60% since October 2022 and was looking to close FY23 with a revenue of INR 1,700 Cr. 

In FY22, the startup’s net loss zoomed 142% year-on-year (YoY) to INR 360.5 Cr. Operating revenue surged 2.4X to INR 926.9 Cr from INR 382.3 Cr in FY21.

WayCool has raised a total funding of about $300 Mn till date and counts the likes of Lightrock, Lightbox, Lightsmith, 57 Stars, and FMO among its backers. 

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Exclusive: WayCool Fires 70 Employees In Second Restructuring Exercise WithIn A Year-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Exclusive: WayCool Fires 70 Employees In Second Restructuring Exercise WithIn A Year-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Exclusive: WayCool Fires 70 Employees In Second Restructuring Exercise WithIn A Year-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Exclusive: WayCool Fires 70 Employees In Second Restructuring Exercise WithIn A Year-Inc42 Media
Exclusive: WayCool Fires 70 Employees In Second Restructuring Exercise WithIn A Year-Inc42 Media
You’re in Good company