Chennai-based agritech supply chain startup Waycool raises Rs 100 crore in debt

Chennai-based agritech supply chain startup Waycool has reportedly raised Rs 100 crore (approximately $12 million) in debt funding from Grand Anicut. 

According to filings with the Registrar of Companies, Waycool's board has approved a capital infusion through 1,000 Series B6 debentures at an issue price of Rs 10 lakh each to raise Rs 100 crore.

Terms of the debt agreement

The debt carries a competitive coupon rate of 18% per annum with a tenure of 18 months. The startup is expected to use the funds primarily to support ongoing business operations, including the expansion of its core activities in the agricultural supply chain.

What does Waycool do?

Founded by Karthik Jayaraman and Sanjay Dasari, Waycool sources fresh produce, such as dairy products, from farmers and supplies it to retailers and restaurants.

The startup also operates private label brands and provides supply chain solutions for fast-moving consumer goods (FMCG) companies.

Layoffs and financial struggles

So far, Waycool has raised approximately $160 million in total funding from prominent investors like Lightrock, International Finance Corporation, FMO, and 57 Stars.

Earlier, the startup was in discussions to raise an additional $50 million, a move that could have pushed its valuation to between $900 million and $1 billion. However, those negotiations did not materialize, and the startup's valuation remains at $700 million, as per the most recent equity round.

In July this year, Waycool implemented austerity measures to control costs, including the layoff of 200 employees across various departments and locations, including Chennai, Bengaluru, and Hyderabad, as well as subsidiaries CensaNext and BrandNext.

The startup has been focused on achieving profitability by July 2023. Despite these challenges, Waycool reported a 62% increase in operating revenue for FY23, reaching Rs 1,251 crore.

However, its losses also increased by 89%, totaling Rs 685 crore during the same period.