Waycool Foods, an agritech startup plans to raise $40 million in funding through a rights issue with Lightrock as the anchor investor. The round is attracting strong interest from many institutional investors and family offices and is nearing full subscription, according to reports on Thursday.
“We intend to close it in the next few weeks. The purpose of this round is to further strengthen our consumer brands’ momentum. This influx of capital will further our efforts in propelling the company’s growth,” the Chennai-based firm said in a statement.
Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool started as a supply chain business for agricultural products. It ventured into the consumer packaged goods space in 2018 through brands such as Madhuram (rice brand sourced from farms), Kitchenji (staples brand), and Freshey’s (ready-to-cook products).
Waycool set to break even by FY 2024
“We are present in over 850 towns in South India, with a dominant market position in many of these geographies. Our commitment to this focus will persist, along with continual efforts to introduce new and innovative products that offer increased value to our consumers,” WayCool stated.
In April, BrandsNext was launched to widen its portfolio of consumer goods. WayCool said it restructured the business in the last 18 months to accelerate towards profitability, and now set sights to touch break-even in the beginning of the last quarter of FY24.
The firm’s rands that include dry groceries and fresh produce have gained significant traction till date and are expected to help achieve break-even in the last quarter, according to the company.
Lightrock—an impact investor that has backed big names like Dunzo, Shiprocket, Pharmeasy, and Porter—is one of WayCool’s early investors, which led its $117 million Series D funding round in January last year.
The rights issue is part of a larger funding round which is currently undergoing documentation and “continues to progress at desired pace”, according to the company. WayCool has raised upwards of $300 million in funding till date from marquee investors such as Trifecta Capital, Stride Ventures, and The Lightsmith Group, among others, as per data from market intelligence firm Tracxn.
