Agri startup WayCool Foods raises USD 7.8 mn in debt fund

The funds will be utilised for meeting working capital needs and to boost automation in the existing distribution centres and warehouses, the startup said in a statement.WayCool Foods plans to achieve 70 per cent digital and mechanical automation across all distribution units by mid-2021 to improve process flow, efficiency and eliminating error-prone mundane activities.

Agri supply chain startup WayCool Foods on Thursday said it has raised USD 7.8 million (about Rs 57 crore) in debt from Samunnati, RBL Bank and InnoVen Capital. The funds will be utilised for meeting working capital needs and to boost automation in the existing distribution centres and warehouses, the startup said in a statement.

WayCool Foods plans to achieve 70 per cent digital and mechanical automation across all distribution units by mid-2021 to improve 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.

''We have 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,'' WayCool Foods CFO Chinna Pardhasaradhi said. This round follows the earlier debt financing round of USD 5.5 million, which was guaranteed by the United States International Development Finance Corporation (USIDFC) and financed by IndusInd Bank, the statement said.

WayCool also closed the Series C round funding of USD 32 million led by Lightbox earlier this year, it added. ''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 CEO Karthik Jayaraman said.

WayCool procures, processes and distributes a range of food products, including fresh produce, staples and dairy products, servicing over 16,000 people across south India. The company is planning to accelerate profitability and improve its capital-efficient model by continuing to invest in technology and automation across the value chain.