WayCool Foods raises $ 7.8 million for working capital needs

WayCool Foods, an agri-supply chain startup, has raised USD 7.8 million from Samunnati, RBL Bank and InnoVen Capital to meet its working capital requirements, the company said on Thursday.

WayCool Foods, an agri-supply chain startup, has raised USD 7.8 million from Samunnati, RBL Bank and InnoVen Capital to meet its working capital requirements, the company said on Thursday. The new fund-raising follows the earlier debt financing round of $ 5.5 million guaranteed by the United States International Development Finance Corporation and financed by IndusInd Bank.

The funds would be used to meet working capital needs and to boost automation in the distribution centres and warehouses, a statement from the Chennai-based company said on Thursday. The startup has planned to achieve 70 per cent digital and mechanical automation across all distribution units by mid-2021.

''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,'' the company's chief financial officer Chinna Pardhasaradhi said.

WayCool has always believed in using a blend of funding sources in order to maximise its capital efficiency, delivering superior returns to investors, he said. The company's CEO Karthik Jayaraman said, ''Samunnati and InnoVen capital have been our long-term partners in growth and we welcome RBL Bank to our platform.'' ''The innovative instruments we are developing in partnership with RBL Bank will free the business from working capital as a growth limiter,'' he said.

The company procures, processes and distributes a range of food products, including fresh produce, staples and dairy products, serving over 16,000 clients across South. It plans to accelerate profitability and improve on its capital efficient model by continuing to invest in technology and automation across the value chain, the statement said. PTI VIJ NVG NVG