Chennai-based agritech startup WayCool has raised INR 100 Cr ($11.9 Mn) through debt financing from Grand Anicut Fund. The capital infusion was approved through the issuance of 1,000 Series B6 debentures, each priced at INR 10 Lakh. The debentures carry a coupon rate of 18% per annum and have a maturity period of 18 months, according to the company’s RoC filings.
The funding will be used to refinance existing debt and support working capital needs as WayCool navigates operational challenges and aims for long-term stability.
Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool operates across multiple verticals, including food distribution and supply chain solutions. The company markets food products under brands like Madhuram, KITCHENji, DeziFresh, and Freshey’s.
Despite showing strong revenue growth, with FY23 revenue reaching INR 1,251 Cr (a 62% increase from FY22), WayCool has faced difficulties in maintaining profitability. Net losses for FY23 rose by 88.7% to INR 685 Cr, up from INR 363 Cr in FY22. The company has also undergone significant restructuring, laying off 270 employees between January and July 2023 in a bid to streamline operations.
WayCool has struggled to secure new equity funding due to the ongoing funding winter. Last year, the startup was in talks to raise $50-$70 Mn at a valuation close to $900 Mn, but the round did not materialize.
With total funding of around $300 Mn to date and investors like Lightrock, Lightbox, and FMO, WayCool remains focused on stabilizing operations through this latest debt round while continuing to grow its FMCG arm, BrandsNext.
