Waycool Secures Rs 110 Crore in Debt Funding
B2B food and agritech platform, Waycool, has successfully raised Rs 110 crore (approximately $13 million) in debt financing from Grand Anicut. This marks the second debt fundraising round for the Chennai-based company within just four months.
Details of the Debt Issuance
The Waycool board has authorised a special resolution to issue 1,100 non-convertible debentures, priced at Rs 1,00,000 each, aimed at raising Rs 100 crore or $13 million. This information has been obtained from the regulatory filing available at the Registrar of Companies.
- The debt investment will carry an annual coupon rate of 18%.
- The tenure of these debentures is set at 18 months.
- In addition to the 18% interest, an extra 4% interest, agreed upon by both the company and the lender, will also be applied, as stated in the explanatory documentation filed by the company.
Use of Funds
Waycool intends to allocate the raised funds towards general corporate purposes. The necessity for these high-interest loans suggests that the company may be encountering difficulties in securing financing through equity rounds and is in urgent need of capital.
Funding History
To date, Waycool has raised approximately $160 million from various investors, including Lightrock, International Finance Corporation, FMO, and 57 Stars, among others. The company was also in discussions to secure over $50 million, a move that could have significantly increased its valuation to between $900 million and $1 billion; however, those negotiations did not materialise. The firm’s valuation stood at $700 million during its last equity round.
About Waycool
Founded by Karthik Jayaraman and Sanjay Dasari, Waycool is engaged in purchasing fresh produce, including dairy products, from farmers and supplying them to retailers and restaurants. The company also operates private label brands and manages distribution for fast-moving consumer goods (FMCG) enterprises.
Financial Performance
In the fiscal year 2023 (FY23), Waycool experienced a 62% increase in operating revenue, reaching Rs 1,251 crore. However, the company also saw its losses soar by 89% to Rs 685 crore during the same period. Waycool has yet to submit its annual report for the fiscal year 2024 (FY24).