WayCool Secures ₹110 Crore Debt Funding from Grand Anicut Amid Growth Push

Chennai-based B2B food and agritech platform WayCool has raised ₹110 crore ($13 million) in debt financing from Grand Anicut, marking its second debt round in four months. According to recent regulatory filings, the company's board has approved the issuance of 1,100 non-convertible debentures, each priced at ₹1,00,000.

The debt arrangement comes with significant terms, including an 18% annual coupon rate over an 18-month tenure, plus an additional 4% interest as mutually agreed upon by both parties. The company has indicated that the funds will be directed toward general corporate business purposes.

WayCool, founded by Karthik Jayaraman and Sanjay Dasari, operates a farm-to-business model. It sources fresh produce and dairy products directly from farmers and distributes them to retailers and restaurants. The company has also established private label brands and manages distribution for FMCG companies.

Financial records reveal that WayCool achieved significant revenue growth in FY23, with operating revenue increasing 62% to ₹1,251 crore. However, during the same time period, the company's losses also widened by 89% to ₹685 crore. The annual report for FY24 is still awaited.

The company has previously secured approximately $160 million in equity funding from notable investors, including Lightrock, International Finance Corporation, FMO, and 57 Stars. Its last equity round valued the company at $700 million. However, recent discussions about a potential $50 million funding round that could have pushed the company's valuation close to $1 billion did not materialize.

The consecutive debt rounds with high interest rates suggest challenges in securing fresh equity investment, even as the company continues to pursue its growth objectives in India's competitive agritech sector.