WayCool co-founder Sanjay Dasari steps down after nearly a decade

Sanjay Dasari, co-founder of agricultural supply chain startup WayCool, has stepped down after almost a decade with the company.

Dasari announced his decision in a LinkedIn post, stating that he will transition to an advisory role focusing on strategic projects and fundraising. 

Dasari co-founded WayCool with Karthik Jayaraman, building it into a prominent agritech firm.

The startup sources fresh produce, including dairy, from farmers and supplies it to retailers and restaurants. It also operates private label brands and handles distribution for fast-moving consumer goods (FMCG) companies.  

Financial turbulence and growth efforts

Under Dasari and Jayaraman’s leadership, WayCool raised nearly $200 million in equity from global investors. Most recently, it secured Rs.100 crore in debt financing to refinance existing borrowings and manage working capital.

However, fundraising challenges have persisted, including a stalled equity round that could have valued the company at $900 million to $1 billion.  

The startup's valuation stood at $700 million during its last equity round. Despite its ambition to achieve profitability, WayCool has faced significant obstacles, including delayed payments to vendors, salary postponements, and layoffs affecting 200 employees. These measures were part of efforts to reduce costs and reach profitability by mid-2024.  

Operational highlights and future plans

Despite the hurdles, WayCool achieved a 62% growth in operating revenue in FY23, generating Rs 1,251 crore. Losses, however, increased by 89% to Rs 685 crore during the same period.

Dasari noted in his farewell post that the company has attained CM3 profitability, covering both fixed and variable costs.  

Reflecting on WayCool’s journey, Dasari shared, “From grocery food trucks to weathering floods, cyclones, and a pandemic, we’ve come a long way.”

He will now relocate to San Francisco to explore new opportunities in operations, investment, angel funding, and mentorship.