Chennai based startup WayCool Foods has raised $7.8 million in debt from Samunnati, 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 funds will be utilised for meeting working capital needs and to boost automation in the existing distribution centres and warehouses. WayCool Foods plans to achieve 70% digital and mechanical automation across all distribution units by mid-2021, in turn improving process flow, efficiency, and eliminating error-prone mundane activities.
On the new debt financing, Chinna Pardhasaradhi, CFO, WayCool Foods said, “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. WayCool has always believed in using a blend of funding sources in order to maximise its capital efficiency, thus delivering superior returns to investors. A number of unique lines have been leveraged in the current round. These make us one of the most capital efficient startups in the space.”
Karthik Jayaraman, CEO 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 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. The Company plans to accelerate profitability and improve on its capital efficient model by continuing to invest in technology and automation across the value chain.
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.