Netherland development finance company, FMO Entrepreneurial Development Bank, on November 14, announced that it is planning to invest $5.2 Mn (INR 37.31 Cr) in Chennai-based WayCool Foods And Products for Infrastructure development.
“The Company focuses on India’s fragmented food value chains and leverages technology and automation to improve logistics and distribution services, reduce food waste, increase farmer income and improve the quality of the produce for the consumer,” FMO said in its statement.
Previously in September 2019, Social enterprise-focused investment firm Aavishkaar Group had raised $27 Mn from FMO. Other Indian companies in FMO’s portfolio include new Energies business Orb Energy, SME lending startup Lendingkart, micro-lending startup Ftcash and digital payments startup Innoviti.
Founded by July 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool is an agritech platform that provides an omnichannel platform for the distribution of fresh fruits and vegetables to local shops and modern retail outlets.
WayCool has its retail presence in Chennai through its SunnyBee brand, which operates retail stores and mobile stores on trucks. SunnyBee also runs other private label products and brands through partnerships with sister companies.
WayCool aims to build a large food distribution business by creating an efficient and informed supply chain. The company currently distributes its products — produce, staples and dairy serving — across its distribution channels to four thousand clients.
Earlier in January, WayCool raised $16.9 Mn (INR 120 Cr) from institutional lenders and prominent angel investors in both equity and debt. The investors included LGT Impact, Caspian and Northern Arc Capital.
With $540 Bn contributed to India’s overall $880 Bn retail market in 2018, food and grocery became the single largest consumption category in India. According to Inc42 DataLabs, the total funding in Indian agritech startups has increased to $66.6 Mn (INR 463 Cr) in 2018 from $46.1 Mn (INR 320 Cr) in 2017. Some of the companies in the sector include Ninjacart, Vegfru, Lemon Leaf, DayBox, Crofarm and CropIn.
Bangalore-based online grocery delivery startup Ninjacart raised INR 30 Cr in debt from Indian venture debt fund Trifecta Capital. The company has issued 300 debentures, equally divided to be a part of Series C and Series D.