Agritech startup WayCool Foods raises $32m from Lightbox, others

Indian agritech startup WayCool Foods announced that it has secured US$32 million in a series C funding round led by VC firm Lightbox. Dutch entrepreneurial development bank FMO and existing investor LGT Lightstone Aspada were participating investors.

The company has also secured venture debt from Innoven Capital as part of the round.

Photo credit: Nikhil Patil/ 123RF

Founded in 2015, the Chennai-based startup procures, processes, and distributes fresh produce, staples, and dairy products. It says it moves over 250 tonnes of food every day to 8,000 enterprise clients across Southern India.

The company operates through its direct supply chain, giving it the ability to better project demand and supply, and develops a range of branded products.

“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,” said Linda Broekhuizen, chief investment officer at FMO.

WayCool Foods now intends to accelerate its path to profitability and focus on improving its lean, capital-efficient model.

According to a statement, the startup will use the new funds to automate its supply chain and build out the next layer of data analytics to boost its efficiency. It will also expand its product offerings for enterprise and retail customers.

Part of the fresh capital will also go to an agricultural program called “Outgrow.” Recently, the company set up its first Agricultural Research Station, where it will collaborate with startups to bring relevant production technologies to its base of nearly 40,000 farmers.

WayCool Foods previously secured US$2.7 million from Aspada in 2017, followed by a US$16.9 million funding round last year.