[Funding alert] WayCool Foods raises $7.8M through debt financing
Agri supply chain startupFoods has raised $7.8 million in debt from , RBL Bank, and InnoVen Capital. The funds will be used to meet working capital needs and to boost automation in the existing distribution centres and warehouses.
The startup had earlier raised debt financing of $5.5 million, by United States International Development Finance Corporation (USIDFC) and financed by IndusInd Bank. Earlier this year, the startup had also raised a Series C round of $32 million led by Lightbox.
In a press statement shared by WayCool, Karthik Jayaraman, CEO, said “Samunnati and InnoVen capital have been our long-term partners in growth, and the present funding lines are a natural evolution of this partnership. We welcome RBL Bank to our platform. The innovative instruments that we are developing in partnership with RBL Bank will free the business from working capital as a growth limiter.”
Team WayCool Foods
The company stated it is looking to achieve 70 percent digital and mechanical automation across all distribution units by mid-2021, in turn improving process flow, efficiency, and eliminating error-prone mundane activities.
The startup procures, processes, and distributes a range of food products including fresh produce, staples, and dairy products, servicing over 16,000 clients across South India. The company operates a soil-to-sale model, engaging deeply with a base of 50,000 farmers in more than 50 regions across India, while bringing efficiency through its direct supply chain model.
On the new debt financing, Chinna Pardhasaradhi, CFO, WayCool Foods said, “The latest debt round completes the funding requirements for the company’s Annual Business Plan. It will be used to support select new lines of growth and build related physical as well as digital assets. WayCool has always believed in using a blend of funding sources in order to maximise its capital efficiency, thus delivering superior returns to investors. A number of unique lines have been leveraged in the current round. These make us one of the most capital-efficient startups in the space.”
The company has also stated it plans to accelerate profitability and improve its capital-efficient model by continuing to invest in technology and automation across the value chain.