Food & Agritech startup Waycool nets $12 million debt from Grand Anicut
Waycool, a Chennai-based agriculture supply chain company, has secured Rs. 100 crore (approximately $12 million) in debt financing from Grand Anicut, marking its first major funding round in two years.
The company issued 1,000 Series B6 debentures at an issue price of Rs 10,00,000 each, as detailed in a regulatory filing from the Registrar of Companies (RoC).
This debt carries an 18% annual interest rate and has a tenure of 18 months. Waycool intends to use the funds to support ongoing business operations. This funding is a crucial development for the company, which has faced challenges in securing equity financing.
Founded by Karthik Jayaraman and Sanjay Dasari, Waycool sources fresh produce and dairy products from farmers and distributes them to retailers and restaurants. The company also operates private label brands and provides distribution services for FMCG companies.
To date, Waycool has raised approximately $160 million from investors such as Lightrock, International Finance Corporation, FMO, and 57 Stars. Although it was negotiating for over $50 million that could have increased its valuation to between $900 million and $1 billion, those talks did not materialize. The company was last valued at $700 million in its previous equity round.
In an effort to reduce costs and reach profitability by July, Waycool recently laid off 200 employees across various departments. For FY23, the company reported a 62% increase in operating revenue to Rs 1,251 crore, while its losses surged by 89% to Rs 685 crore. The annual report for FY24 is still pending.
This debt funding reflects the challenges agritech startups face in securing equity capital. Despite being close to achieving unicorn status, Waycool, Dehaat, and Ninjacart are yet to reach that milestone.
Agritech remains one of the least funded sectors in 2024, with over 30 startups raising just $150 million by September, following a decline in funding from $772 million in 2022 and $636 million in 2021.
Recently, agritech firm Greenikk ceased operations due to operational difficulties.
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The company issued 1,000 Series B6 debentures at an issue price of Rs 10,00,000 each, as detailed in a regulatory filing from the Registrar of Companies (RoC).
This debt carries an 18% annual interest rate and has a tenure of 18 months. Waycool intends to use the funds to support ongoing business operations. This funding is a crucial development for the company, which has faced challenges in securing equity financing.
Founded by Karthik Jayaraman and Sanjay Dasari, Waycool sources fresh produce and dairy products from farmers and distributes them to retailers and restaurants. The company also operates private label brands and provides distribution services for FMCG companies.
To date, Waycool has raised approximately $160 million from investors such as Lightrock, International Finance Corporation, FMO, and 57 Stars. Although it was negotiating for over $50 million that could have increased its valuation to between $900 million and $1 billion, those talks did not materialize. The company was last valued at $700 million in its previous equity round.
In an effort to reduce costs and reach profitability by July, Waycool recently laid off 200 employees across various departments. For FY23, the company reported a 62% increase in operating revenue to Rs 1,251 crore, while its losses surged by 89% to Rs 685 crore. The annual report for FY24 is still pending.
This debt funding reflects the challenges agritech startups face in securing equity capital. Despite being close to achieving unicorn status, Waycool, Dehaat, and Ninjacart are yet to reach that milestone.
Agritech remains one of the least funded sectors in 2024, with over 30 startups raising just $150 million by September, following a decline in funding from $772 million in 2022 and $636 million in 2021.
Recently, agritech firm Greenikk ceased operations due to operational difficulties.
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