February 10, 2020

By Lynda Kiernan

WayCool, a Chennai, India-based, technology-driven fresh produce distribution platform, has raised $32 million in a combination of equity and debt through a Series B led by Lightbox, and including Dutch development bank FMO, and existing investor LGT Lightstone Aspada. 

As part of the round, WayCool has also partnered with InnoVen Capital to raise venture debt.

Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool focuses on food development and distribution, leveraging innovative technology to achieve scale and to manage  a complex supply chain.

The company sources fresh fruits and vegetables, staples, value-added products, and dairy products from smallholders and aggregators, or from produce-specific value chain companies to sell through various distribution channels, including retail shops and outlets, hotels, restaurants, and catering operations.

By operating across a full stack, broadline product range, WayCool is able to optimize sourcing, target markets, and transportation across distribution channels through its hybrid business model, moving more than 250 tons of food every day to 8,000 clients across Southern India. Its soil-to-sale business model deeply engages with nearly 40,000 farmers, improving income and increasing efficiency for agricultural producers through its direct supply chain model.

“We are proud to be a partner of WayCool,” said Linda Broekhuizen, CIO,  FMO. “The company leverages technology and innovative concepts to improve logistics and distribution services. Therefore, value chains are optimized thereby realizing reduced food waste.”

“The company is also highly impactful on the social side as it sources its produce from over 35,000 smallholder farmers that benefit from higher prices and improved yields. In addition to this, it provides employment to over 900 people.”

The startup’s business model and the direct relationships it has built throughout the supply chain give the startup a unique ability to determine supply and demand for a variety of foods, and have allowed the company to develop a range of branded food products under the names, Freshey’s, Kitchenji, Madhuram and Shuddha.

“We are committed to building a lean, efficient and profitable enterprise that makes social impact an integral part of its operations,” said Karthik Jayaraman, co-founder and CEO, WayCool. “Lightbox’s deep experience in technology and brand building will greatly help us as we strengthen our digital backbone, and our move into value-added products. FMO’s guidance will be of essence in building a culture of impact orientation across the organization and staying true to the course.”

In January of last year WayCool raised $16.9  million through a Series B backed by Zurich-based impact investor LGT Impact, Hyderabad-based Caspian, and NBFC, Northern Arc Capital. Then, before the year was out, FMO announced in November 2019 its intentions to invest $5.2 million in the company to support the buildout of its infrastructure, however, this Series C represents the first agtech investment for FMO through a newly launched program. 

“This is FMO’s first Agri Tech deal under the new Ventures Program, which focuses on Fintech, Off-Grid Energy, and Agri Tech,” said Broekhuizen.”We look forward to supporting the company to become the largest and most impactful food logistics & distribution company of India.”

WayCool plans to use the capital from this round to support the expansion of “Outgrow”, its agricultural extension program. It has also just successfully established its first Agricultural Research Station where various startups bring the latest technology advances to WayCool’s growing farmer base.

“We have spent time with the remarkable team led by Karthik and Sanjay at WayCool and the community of farmers on their platform,” said Prashant Mehta, partner,Lightbox.

“We’re thrilled with the achievement and the focus they have on leveraging technology to solve the massive challenges in the food supply chain. We look forward to working with them and positively impacting the livelihood of farmers and building a long-term sustainable business.”

– Lynda Kiernan is Editor with GAI Media and daily contributor to the GAI News and Agtech Intel platforms. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.