By Start Ups
Agri-commerce startup WayCool
Agriculture supply chain firm WayCool has laid off over 200 employees across departments as the company aims to achieve profitability. This is the third round of layoffs at the Chennai-based firm within the last 12 months, according to industry sources. The layoffs have impacted employees across Chennai, Bengaluru and Hyderabad.
“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 firm did not reveal the number of employees that have been laid off. The company had laid off about 370 people in the last two rounds.
The company has raised total funding of $341 million from investors such as LightRock, LightBox, Aspada, FMO, Lightsmith, World Bank Group’s IFC, and Redwood Equity Partners, according to data platform Tracxn. It was last valued at $711 million.
The company was reportedly negotiating a fresh round but the deal did not go through.
WayCool said it has received 75 per cent of the capital from its bridge round and will complete the round by August. This gives it adequate capital runway to get past the cash profitability milestone.
“The company’s focus continues to be on the growth of brands and their establishment as true consumer brands,” said the WayCool spokesperson. “Forty-five per cent of its revenues in FY24 came from brands, and the share continues to increase. There are indeed management changes in line with the above, and successors have stepped in where changes were needed.”
The company is yet to file its annual report for FY24. It registered 62 per cent growth in its operating revenue to Rs 1,251 crore in FY23 from Rs 772 crore in FY22, according to Entrackr. Its losses surged by 89 per cent to Rs 685 crore in FY23.
WayCool was founded by auto industry veteran Karthik Jayaraman and Sanjay Dasari, the son of the ex-head of Ashok Leyland Vinod Dasari, in 2015. It was founded as a social enterprise and agritech company.
Later it diversified into agri-products with a slew of ready-to-cook and other packaged food brands such as Madhuram, Dezi Fresh, Lexotique, Kitchenji, and Freshey’s.
The company works closely with over 200,000 farmers. It operates a broad product range across multiple channels and categories. These include fresh produce, staples, and dairy, serving over 165,000 clients in the general trade, modern trade, and food services space.
First Published: Jul 26 2024 | 5:31 PM IST