Foodtech WayCool raises $40 million in funding led by global investment firm

Food and agritech platform WayCool Foods said it has raised an investment of up to $40 million, led by global investment firm 57 Stars LLC, amid a bleak startup funding environment.

The Chennai-based company said the investment marks 57 Stars' Direct Impact Fund's first transaction and 57 Stars Global Innovation Fund 2's (GIF 2) second transaction. This investment comes a few months after it closed a $117-million Series D round led by existing and new investors including LightRock, LightBox, and FMO in January this year.

Founded in 2015 by Sanjay Dasari and Karthik Jayaraman, WayCool is an agri-commerce company that aims to build a food development and distribution service to deliver products such as fresh produce, staples, and dairy to consumers.

The company claims to work with more than 1,50,000 farmers and operates a product range across multiple channels, serving over 1,00,000 clients.

The company says its technology reduces inefficiencies and drives improvements in food safety quality management.

"We are happy to partner with 57 Stars in the next phase of our journey. This investment illustrates the continuing confidence of mature global investors in fundamentally sound businesses delivering lasting impact," said Waycool Chief Financial Officer (CFO) Chinna Pardhasaradhi.

"The Indian agricultural market's fragmented structure separates farmers from end-markets through multiple intermediaries," said Amit Chandra, 57 Stars' Managing Director, "WayCool delivers efficiencies for all stakeholders, from soil to sale."

The company had recently acquired the Agritech platform the IP of GramworkX and had invested $7.5 million in SV Agri (SiddhiVinayak Agri Processing), a fully integrated player in the potato supply chain ecosystem.

Among WayCool's competitors are Ninjacart, DeHaat, AgroStar, and so on who have also recently raised funding of $145 million, $115 million, and $70 million, respectively.