WayCool Foods targets 70% digital and mechanical automation
Innoven Capital, Asia’s leading venture lender operating out of Mumbai, Gurgaon, Bengaluru, Singapore and Beijing, has participated in the US$7.8 million debt raised by India’s largest Agri supply chain startup WayCool Foods.
Also contributing to the WayCool Foods latest fund was Samunnati, which helps farmer producer organisations across the country meet the supply of markets and Mumbai-headquartered RBL Bank, the former Ratnakar Bank which is a private sector bank.
“Samunnati and InnoVen Capital have been our long-term partners in growth, and the present funding lines are a natural evolution of this partnership. We welcome RBL Bank to our platform,” WayCool Foods CEO Karthik Jayaraman said on 10 Dec 2020, announcing the closure of the latest fund.
“The innovative instruments that we are developing in partnership with RBL Bank will free the business from working capital as a growth limiter,” he informed.
The funds will be utilized for meeting working capital needs and to boost automation in the existing distribution centres and warehouses.
WayCool Foods plans to achieve 70% digital and mechanical automation across all distribution units by mid-2021, in turn improving process flow, efficiency, and eliminating error-prone mundane activities.
“The latest debt round completes the funding requirements for the company’s Annual Business Plan. It will be used to support select new lines of growth and build related physical as well as digital assets,” Chinna Pardhasaradhi, CFO, WayCool Foods said on the new debt financing.
“WayCool has always believed in using a blend of funding sources in order to maximise its capital efficiency, thus delivering superior returns to investors. A number of unique lines have been leveraged in the current round. These make us one of the most capital-efficient startups in the space,” said Pardhasaradhi.
WayCool procures, processes, and distributes a range of food products including fresh produce, staples, and dairy products, servicing over 16,000 clients across South India. The company operates a soil-to-sale model, engaging deeply with a base of 50,000 farmers in more than 50 regions across India while bringing efficiency through its direct supply chain model.
The company plans to accelerate profitability and improve on its capital-efficient model by continuing to invest in technology and automation across the value chain, said its executives.
WayCool has previously raised three rounds of equity funding from Lightbox, LGT Lightstone Aspada, and FMO, and has raised debt in the past from Caspian Impact Investment and Northern Arc Capital Ltd.
The latest fundraising, announced on 10 Dec 2020, follows the earlier debt financing round of US$5.5 million guaranteed by the United States International Development Finance Corporation (USIDFC) and financed by Pune-headquartered IndusInd Bank Ltd.
WayCool has also closed the Series C round of US$32 million earlier this year which was led by Lightbox, a venture capital firm from Mumbai.
Founded in July 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool Foods is India’s largest Agri supply chain startup. Focusing on food development and distribution, the company leverages innovative technology to scale and operate a complex supply chain.
WayCool operates a full-stack, broad line product range across multiple channels and categories such as fresh produce, staples, and dairy, serving over 16,000 clients in the general trade, modern trade, and food services space. #banking #agriculture #manufacturing #investment #technology #debts /fiinews.com
