By Entrackr
Agriculture supply chain firm Waycool has laid off over 200 employees across departments as the company eyes profitability. This is the third round of layoffs at the Chennai-based company.
“Each of WayCool’s businesses is executing their plans to get to profitability. As part of this, roles and structures are further simplified and automated. This will be a continual process,” said a Waycool spokesperson.
The company did not comment on the number of employees being fired. The previous two firings took place in July 2023 and February this year in which more than 370 employees were given pink slips.
Moneycontrol, which reported the development first, said that the layoffs have impacted employees across Chennai, Bengaluru and Hyderabad, and its two subsidiaries: CensaNext and BrandNext.
As per Entrackr sources, Waycool was negotiating a fresh round to the tune of more than $50 million which could have propelled its valuation in the range of $900 million to $1 billion. However, the talks did not go through. The firm was valued at $700 million in its last equity round.
Waycool has raised around $160 million in funding to date from Lightrock, International Finance Corporation, FMO, and 57 Stars, among others.
Earlier this week, Entrackr had highlighted Waycool’s struggle to scale and failing to raise a new round. While the company is yet to file its annual report for FY24, it registered 62% growth in its operating revenue to Rs 1,251 crore in FY23 from Rs 772 crore in FY22. The firm continued to bleed as its losses surged by 89% to Rs 685 crore in FY23.
Founded by Karthik Jayaraman and Sanjay Dasari, Waycool buys fresh produce, including dairy products, from farmers and sells them to retailers and restaurants. It also runs private label brands and handles distribution for FMCG companies.
This is the second major layoffs in the agritech space after ReshaMandi which sacked almost 80% of its workforce.
Agritech was one of least funded segments during the first half of 2024. As per data compiled by TheKredible, agritech startups raised only $94 million across 22 deals, accounting for only 1.34% of the overall fundraise during H1 2024.