In debt from Sammunati, RBL Bank and Innoven Capital, Agri supply chain start-up WayCool Foods has raised USD 7.8 million (about Rs 57 crore). This follows the earlier USD 5.5 million debt financing round guaranteed and sponsored by IndusInd Bank by the United States International Development Finance Corporation (USIDFC). The Series C round of USD32 million led by Lightbox earlier this year was also closed by WayCool.
The new funding will be used in the current distribution centres and warehouses to meet working capital requirements and to improve automation, the company mentioned in a statement.
By mid-2021, WayCool aims to achieve 70% digital and mechanical automation across all distribution units, thereby improving process flow, performance, and removing mundane tasks that are prone to errors.
“The new debt round completes the Annual Business Plan of the company’s financing needs. Chinna Pardhasaradhi, CFO, WayCool Foods, said it will be used to help select new growth lines and develop relevant physical as well as digital properties. ”
A variety of food products, including fresh produce, staples, and dairy products, are procured, processed, and distributed by WayCool, serving over 16,000 customers across South India. The company operates a soil-to-sale model, engaging extensively in more than 50 regions across India with a base of 50,000 farmers, while at the same time bringing productivity through its direct supply chain model.
“Samunnati and InnoVen capital have been our long-term growth partners, and the new funding lines are a natural extension of this relationship. On our platform, we welcome RBL Bank. As a growth limiter, the creative tools we are creating in collaboration with RBL Bank would free the company from working capital. CEO Mr. Karthik Jayaraman said.
WayCool has previously raised three equity financing rounds from Lightbox, LGT Lightstone Aspada, and FMO, and has previously raised debt from Caspian Impact Investment and Northern Arc Capital Ltd.