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Chennai-based agritech startup WayCool Foods announced that it 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.
Earlier this year, the startup also raised its Series C round of $32 million led by Lightbox.
The funds will be utilized for meeting working capital needs and to boost automation in the existing distribution centres and warehouses. The startup plans to achieve 70 per cent digital and mechanical automation across all distribution units by mid-2021, thus improving process flow, efficiency, and eliminating error-prone mundane activities.
Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool procures, processes and distributes a range of food products. The startup everyday moves more than 250 tonnes of food to 16,000 clients across south India. Food products distributed by the startup includes fresh produce, staples and dairy products.The company operates a soil-to-sale model while working with 50,000 farmers in more than 50 regions across India.
Commenting on the new debt financing, Chinna Pardhasaradhi, chief financial officer, 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.”
Jayaraman welcomed RBL to join its platform and said that the innovative instruments that they are developing will free business from working capital as a growth limiter.