Mumbai: WayCool Foods and Products, a fresh-produce distribution startup, is in discussions with private equity funds to raise about $25 million (Rs 175 crore) in its series D fundraising. The Chennai-based startup is in early stages of talks with food and agri-focused global funds and impact funds, according to two people aware of the development.
Aspada Investment Advisors, an early-stage VC firm, holds about 26% stake in WayCool.
The promoters have hired Veda Corporate Advisors to find a potential investor. The proposed fund will be used for expanding into markets like Andhra Pradesh, Telengana and Maharashtra.
Set up in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool sources fruits and vegetables from farmers and aggregators and sells to clients such as hotels, restaurants, schools, kirana stores and institutional canteens. With an annual revenue of Rs 130 crore, WayCool handles around 100 tonnes of fruits and vegetables a day.
"The discussions for fundraising are on and we expect the deal to be signed in a few months time," said Karthik Jayaraman, founder & president at WayCool.
According to him, the proposed fund will be utilised for geographic expansion and launching value-added products. "Besides our plan to enter new markets, we wanted to add a new range of products such as cut vegetables and partially processed vegetables. Through automation, we plan to increase the transparency and efficiency of our supply chain."
Aspada invested $2.7 million in Waycool in 2017. Aspada has also made investments in other distribution companies focused on fruits and vegetables, such as LEAF, InI Farms (exporter of pomegranates and bananas), AllFresh (operates in apples, orange and cherries) and SV Agri (potato supply chain).
WayCool competes with other agritech startups in India such as Kamatan, backed by impact VC fund Elevar Equity; B-2-B agri-marketing platform Ninjacart, backed by Trifecta Capital; Jumbotail, backed by Kalaari Capital and Nexus Venture Partners; Delhi-based supply chain startup Lemon Leaf and Phaneesh Murthy-backed Bengaluru-based B2B agritech startup Farm Taaza.
Aspada Investment Advisors, an early-stage VC firm, holds about 26% stake in WayCool.
The promoters have hired Veda Corporate Advisors to find a potential investor. The proposed fund will be used for expanding into markets like Andhra Pradesh, Telengana and Maharashtra.
Set up in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool sources fruits and vegetables from farmers and aggregators and sells to clients such as hotels, restaurants, schools, kirana stores and institutional canteens. With an annual revenue of Rs 130 crore, WayCool handles around 100 tonnes of fruits and vegetables a day.
"The discussions for fundraising are on and we expect the deal to be signed in a few months time," said Karthik Jayaraman, founder & president at WayCool.
According to him, the proposed fund will be utilised for geographic expansion and launching value-added products. "Besides our plan to enter new markets, we wanted to add a new range of products such as cut vegetables and partially processed vegetables. Through automation, we plan to increase the transparency and efficiency of our supply chain."
Aspada invested $2.7 million in Waycool in 2017. Aspada has also made investments in other distribution companies focused on fruits and vegetables, such as LEAF, InI Farms (exporter of pomegranates and bananas), AllFresh (operates in apples, orange and cherries) and SV Agri (potato supply chain).
WayCool competes with other agritech startups in India such as Kamatan, backed by impact VC fund Elevar Equity; B-2-B agri-marketing platform Ninjacart, backed by Trifecta Capital; Jumbotail, backed by Kalaari Capital and Nexus Venture Partners; Delhi-based supply chain startup Lemon Leaf and Phaneesh Murthy-backed Bengaluru-based B2B agritech startup Farm Taaza.
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