WayCool has been guaranteed $5.5 million funding by U.S International Development Finance Corporation through debt financing from IndusInd Bank. The advisor of this transaction was Setuka Partners LLP. The loan will be organized through IndusInd Bank’s Impact Investing division, which will be used by WayCool for its expansion.
This funding comes after the Series C round that took place in the beginning of this year, where WayCool raised $32 Million by Lightbox.
WayCool Foods intends on using this fund to implement advanced technology in terms of hygiene measures and enhance the transportation competency so that food spoilage is reduced and farm yields are bettered. This will help in enhancing food security. The company also intends on fortifying food distribution in South India.
The Co-founder and CEO of WayCool Foods, Karthik Jayaraman, revealed that their company was progressively creating the required technology and operational capabilities to reinforce “agrifood supply chains from soil to sale”. He also welcomed DFC and IndusInd as their partners and trusts that the venture will help WayCool to bring about a change in their sector.
The Director – Social Enterprise Finance Team, DFC, Ajay Rao, said that DFC was proud to have been associated with WayCool Foods. He said that WayCool had a wonderful team who have been sincerely working together to resolve some of the grave challenges of the agricultural sector of India. This collaboration that has been possible in this time of pandemic, would help WayCool’s initiative to enhance India’s food security issues.
WayCool acquires, processes, and distributes a variety of food products, including dairy products, staples and fresh produce. They move more than 250 tonnes of food daily to 8,000 different enterprise clients distributed throughout South India. They function on a soil-to-sale model and stay connected with about 40,000 farmers, about 50 regions all over India. They have brought about efficiency through their direct supply chain model.
WayCool has always done a commendable job and it would be great to see that they use this investment in securing their food supply chain to function even better than before.