[Funding alert] Agritech startup WayCool Foods raises $5.5M from IndusInd Bank
Chennai-based agritech startup WayCool Foods on Wednesday said it has raised $5.5 million from IndusInd Bank through debt financing as part of its Series C round. The transaction was guaranteed by Development Finance Corporation (DFC) — America’s development bank.
DFC provides financing to address critical challenges across emerging markets globally. According to a statement by the startup, the loan is to be deployed through IndusInd Bank's Impact Investing division which will be supporting WayCool Foods’ expansion plans as well.
In February 2020, WayCool Foods had raised $32 million in the Series C round, led by Lightbox, with participation from FMO — the Dutch entrepreneurial development bank, as well as its current investor LGT Lightstone Aspada.
Commenting on the investment, Karthik Jayaraman, Co-founder and CEO, WayCool Foods, said,
"WayCool has been steadily building necessary technology and operational capabilities to operate robust agrifood supply chains from soil to sale. We welcome DFC and IndusInd Bank as partners in this journey, and believe that this partnership is an endorsement of WayCool’s ability to lead transformation within the sector."
Started in 2015 by Karthik and Sanjay Dasari, WayCool Foods procures, processes, and distributes a wide range of food products, including fresh produce, staples, and dairy products. It claims to be moving over 250 tonnes of food every day to 8,000 enterprise clients across Southern India.
The startup operates a soil-to-sale model, engaging deeply with a base of nearly 40,000 farmers to improve farm income while bringing efficiency through its direct supply chain model in more than 50 regions across India.
Ajay Rao, Director - Social Enterprise Finance Team, DFC, said,
"We are proud to work together with the remarkable team at WayCool to solve some of the most pressing challenges in India’s agricultural sector. We look forward to this collaboration during these critical times, and are thrilled to support WayCool’s efforts to enhance food security in India."
Edited by Suman Singh