WayCool Foods & Products secures $13 million in India's largest Agritech Funding round

WayCool Foods and Products Pvt. has secured $13 million in the second tranche of a Series D investment, which, according to a source, will be the largest in India's agritech sector once completed. According to the source, the round will be completed in a few days. Existing and new investors also participated in this tranche.

"The main uses of the funds will be towards technology enhancements in full-stack, end-to-end supply chain and customer-based analytics," the source said. "Going forward, the technology platform will be the backbone to the company's future growth plans as well."

The newest valuation of WayCool Foods is kept under wraps. Last year, Lightbox, a venture capital firm, led a Series C investment that included FMO, a Dutch development bank, and LGT Lightstone Aspada, an existing investor. In that round, the company joined with InnoVen Capital to raise venture loans.

The Chennai-based enterprise, founded in July 2015 by Karthik Jayaraman and Sanjay Dasari, buys roughly 320 varieties of fresh vegetables as well as staples, dairy, and other produce from 1,500 small farmers across South India.

It also works directly with approximately 35 non-governmental cooperatives, giving it access to a potential farmer base of 35,000.

"This year, we have seen a clear increase in growth," the source cited above said. "The pandemic has been a real test of our resilience and we have proved our mettle.”

“We have already reached a monthly revenue run rate of Rs 1,000 crore and are confident of achieving our plans. As soon as we get a clear answer from the new investors, we will reveal our future growth plans."

WayCool Foods is trying to enhance its position in the Middle East, where it has grown its footprint.

"We want to serve the Middle Eastern market as we see clear synergies especially with the products that we have,” the source said. “Also some of the products that we handle have global supply chains and we find the market to be ripe for our presence both from the procurement and demand side.”