WayCool Foods raises $7.8 million in debt

CHENNAI: Agri supply chain startup

WayCool Foods

has raised $7.8 million in

debt

from Samunnati, RBL Bank and InnoVen Capital.

The startup said it will utilise the funds 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," the company said.

This follows the company's 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.

WayCool also closed a Series C equity funding round of $32 million led by Lightbox earlier this year.

“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," Chinna Pardhasaradhi, CFO, WayCool Foods said.

"The innovative instruments that we are developing in partnership with RBL Bank will free the business from working capital as a growth limiter," CEO Karthik Jayaraman said.

WayCool procures, processes and distributes fresh

produce

, staples and dairy products, servicing over 16,000 clients across South India.

The company operates a "soil-to-sale" model, engaging with around 50,000

farmers

in more than 50 regions across India through a direct supply chain model.

WayCool counts Lightbox, LGT Lightstone Aspada, and FMO among its investors and has raised debt in the past from Caspian Impact Investment and Northern Arc Capital.