WayCool raises Rs 100 Cr in debt from Grand Anicut
WayCool, which had earlier pivoted from a B2C to a B2B model, raised the funding after facing rounds of layoffs and defaults from its vendors.
Agriculture supply chain startup has raised Rs 100 crore in debt financing from Grand Anicut, according to filings with the Registrar of Companies.
The board approved a capital infusion through 1,000 Series B6 debentures at an issue price of Rs 10 lakh each to raise Rs 100 crore. The debentures carry a coupon rate (interest rate) of 18% per annum, with a maturity period of 18 months.
WayCool expects to use the funds for refinancing its existing borrowings and for working capital.
The debt round comes as the company navigates struggles with diminishing financings and difficulty in raising funding.
In June, the Chennai-based company finished a fresh round of layoffs which affected over 200 employees as it ramps up its efforts to hit profitability. According to a media report by Moneycontrol, the company had previously postponed employee salaries and did not process their June payslips.
On top of this, payments from clients were delayed, while outstanding payments to vendors, including millers, logistics partners, and service providers like SGS, further worsened the situation.
In 2019, it shifted from a B2C model after co-founders Karthik Jayaraman and Sanjay Dasar chose to pivot to a farm-to-fork B2B model. The fresh produce distribution platform sources fruits and vegetables from small-hold farmers and aggregators, and sells through multiple distribution channels. It leverages innovative technology to operate its complex supply chain.
Edited by Jyoti Narayan