Food and agritech platform WayCool has raised $40 million in mix of equity and debt funding round from new and exciting investors.
This equity round of $25 million is led by Global investment firm 57 Stars LLC along with participation from existing investors and the remaining capital will be raised as debt.
The investment is the first transaction of 57 Stars Direct Impact Fund and second transaction of 57 Stars Global Innovation Fund 2 (GIF2), the company said.
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The Chennai-based WayCool was founded in 2015 by Sanjay Dasari and Karthik Jayaraman, It is an agri-commerce company that aims to build a food development and distribution service to deliver products such as fresh produce, staples and dairy to consumers.
It claims to have worked with over 1,50,000 farmers and operates a product range across multiple channels, serving over 1,00,000 customers.
The startup said its technology reduces inefficiencies and improves food safety quality management.
Chinna Pardhasaradhi, CFO, WayCool, said, “This investment illustrates the continuing confidence of mature global investors in fundamentally sound businesses delivering lasting impact.”
“The Indian agricultural market’s fragmented structure separates farmers from end-markets through multiple intermediaries. WayCool delivers efficiencies for all stakeholders from soil to sale”, said, Amit Chandra, Managing Director, 57 Stars LLC.
According to a press statement, 57 Stars said its investment in Waycool exemplifies the startup’s commitment to sustainable development and its dedicated impact investment strategy, which strives to deliver attractive financial returns with meaningful positive social and/or environmental impacts.
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“We believe our investment in WayCool is highly impactful, generating significant positive social and environmental outcomes at scale and addressing massive challenges in the food supply chain, where an estimated 30 percent of food is wasted before it reaches the end consumer. This deal provides our investors with participation in India’s leading crop-tech company with the potential to outperform,” said, Gene Pohren, Co-founder and Managing Director, 57 Stars LLC.
Recently, the startup had acquired GramworkX’ IP agritech platform and invested $7.5 million in SV Agri (Siddhi Vinayak Agri Processing), a fully integrated player in the potato supply chain ecosystem.
In January 2022, WayCool had raised $117-million Series D funding round led by existing and new investors including LightRock, LightBox, and FMO.
WayCool Foods is India’s largest and fastest-growing agri-commerce company. Focusing on food development and distribution, the company leverages innovative technology to scale and operate a complex supply chain from soil to sale. Through its farmer engagement program – Outgrow, WayCool works with 85000+ farmers.
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WayCool operates a full stack, broadline product range across multiple channels and categories such as fresh produce, staples, and dairy, serving over 1,00,000 clients in the general trade, modern trade, and food services space.
WayCool’s consumer brands basket consists of Madhuram, KitchenJi, L’exotique, and Freshey’s, to name a few.