B2B-B2C Financing: WayCool's INR 100 Cr Debt from Grand Anicut

B2B-B2C Financing: A Major Step for WayCool

Chennai-based agritech startup WayCool has successfully secured a debt funding of INR 100 Cr ($11.9 Mn) from Grand Anicut. The board approved a capital infusion through 1,000 Series B6 debentures issued at INR 10 Lakh each to raise the targeted amount. These debentures have a coupon rate of 18% per annum and a maturity period of 18 months, as stated in WayCool’s RoC filing.

Utilization of Funds: Refinancing and Working Capital

WayCool aims to use this fresh capital primarily for refinancing existing borrowings and enhancing its working capital capabilities. Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool offers a variety of food products through seven distinct brands, alongside providing comprehensive supply chain solutions.

Operational Challenges Amid Growth

• Amid this funding, WayCool has faced significant operational struggles, including the layoff of 270 employees from January to July this year.
• Last year, the company also reduced its workforce by around 300 individuals as part of an effort to streamline operations and reduce losses.

Despite these challenges, WayCool has witnessed revenue growth; its operations generated INR 1,251 Cr in FY23, which is a 62% increase from INR 772.3 Cr in FY22. However, net losses ballooned by 88.7%, escalating from INR 363 Cr in FY22 to INR 685 Cr in FY23.

A Journey of Investments

To date, the agritech startup has successfully raised approximately $300 Mn in funding, attracting investments from renowned firms such as Lightrock, Lightbox, Lightsmith, 57 Stars, and FMO.

Recently, WayCool also announced its FMCG arm, BrandsNext, which features brands like Madhuram, KITCHENji, DeziFresh, and Freshey’s. Last year, reports indicated that the startup was in talks to secure $50-$70 Mn at an estimated valuation of $900 Mn, though these negotiations were impacted by the continuing funding winter.