Chennai-based agri supply chain startup Waycool has reportedly raised Rs 100 crore (approximately $12 million) in debt funds from Great Anicut.
According to documents filed with the Registrar of Companies, Waycool’s board of directors 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 has a competitive coupon rate of 18% per annum with a maturity 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 products, such as dairy products, from farmers and supplies them to retailers and restaurants.
The startup also operates private brands and offers 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 notable investors such as Lightrock, International Finance Corporation, FMO, and 57 Stars.
The startup was previously in talks to raise an additional $50 million, a move that could have raised its valuation to between $900 million and $1 billion. However, those negotiations did not materialize and the startup’s valuation remains at $700 million, according to the most recent capital round.
In July of this year, Waycool implemented austerity measures to control costs, including dismissal 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 income for FY23, reaching Rs 1,251 crore.
However, its losses also increased by 89%, totaling Rs 685 million during the same period.
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