Agri supply chain start-up WayCool Foods has raised $7.8 million (about ₹57 crore) in debt from Sammunati, RBL Bank and Innoven Capital. This follows the earlier debt financing round of $5.5 million which was guaranteed by United States International Development Finance Corporation (USIDFC) and financed by IndusInd Bank. WayCool also closed the Series C round of $32 million led by Lightbox earlier this year.
The latest funding will be utilised for meeting working capital needs and to boost automation in the existing distribution centres and warehouses, the company said in a statement.
WayCool plans to achieve 70 per cent digital and mechanical automation across all distribution units by mid-2021, in turn improving process flow, efficiency, and eliminating error-prone mundane activities.
“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,” said Chinna Pardhasaradhi, CFO, WayCool Foods.
WayCool 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.
CEO Karthik Jayaraman 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.”
WayCool has previously raised three rounds of equity funding from Lightbox, LGT Lightstone Aspada, and FMO, and has raised debt in the past from Caspian Impact Investment and Northern Arc Capital Ltd.