WayCool, an agricultural trading startup
Agricultural supply chain company WayCool has laid off over 200 employees across all departments in its quest to achieve profitability. This is the third round of layoffs at the Chennai-based company in the last 12 months, according to industry sources.
The layoffs have affected employees in Chennai, Bengaluru and Hyderabad.
“Each of WayCool’s companies is executing its plans to reach profitability. As part of this, roles and structures are being further simplified and automated. This will be an ongoing process,” a WayCool spokesperson said. The company did not disclose the number of employees who have been laid off. The company has laid off about 370 people in the past two rounds.
The company has raised a total of $341 million in funding from investors including LightRock, LightBox, Aspada, FMO, Lightsmith, the World Bank Group’s International Finance Corporation and Redwood Equity Partners, according to data platform Tracxn. The company was last valued at $711 million. The company reportedly negotiated a new round of funding, but the deal fell through.
WayCool said it has received 75 percent of the capital from its bridge round and will complete it in August. This gives it enough capital headroom to surpass the cash profitability milestone.
“The company continues to focus on growing its brands and establishing them as true consumer brands. Forty-five percent of its revenue in fiscal year 2024 came from brands, and that percentage continues to increase. In fact, there have been management changes in line with the above, and successors have stepped in when changes were needed,” said the WayCool spokesperson.
The company is yet to file its annual report for fiscal 2024. It registered a 62 per cent growth in its operating revenue to Rs 1,251 crore in fiscal 2023 from Rs 772 crore in fiscal 2022, according to Entrackr. Its losses increased 89 per cent to Rs 685 crore in fiscal 2023.
WayCool was founded in 2015 by automotive industry veteran Karthik Jayaraman and Sanjay Dasari, son of former Ashok Leyland director Vinod Dasari. It was founded as a social enterprise and an agri-tech company. It later diversified into agri-products with a number of ready-to-cook and other packaged food brands, including Madhuram, Dezi Fresh, Lexotique, Kitchenji and Freshey’s.
The company works closely with more than 200,000 farmers and offers a wide range of products across multiple channels and categories, including fresh produce, staples and dairy, serving more than 165,000 customers in the general trade, modern trade and food service sectors.
First published: July 26, 2024 | 17:31 IS
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