In an effort to increase profitability, Waycool, a supply chain company for agriculture, has let go of more than 200 workers across several departments. This is the company’s third round of layoffs; it is based in Chennai.
“Each of WayCool’s businesses is executing their plans to get to profitability. As part of this, roles and structures are further simplified and automated. This will be a continual process,” said a Waycool spokesperson.
Regarding the quantity of workers let go, the company remained silent. More than 370 employees received pink slips in the two prior firings, which occurred in July 2023 and February of this year.
Employees in Chennai, Bengaluru, Hyderabad, and its two subsidiaries, CensaNext and BrandNext, have been affected by the layoffs, according to Moneycontrol, which broke the story first.
Media reports claim that Waycool was in talks for a new round worth over $50 million, which could have increased its valuation to between $900 million and $1 billion. The discussions, however, were unsuccessful. The company’s most recent equity round valued it at $700 million.
To date, Waycool has raised approximately $160 million in funding from a variety of sources, including Lightrock, International Finance Corporation, FMO, and 57 Stars.
The media had reported earlier this week on Waycool’s difficulties growing and its inability to raise additional funding. The company reported a 62% increase in operating revenue to Rs 1,251 crore in FY23 from Rs 772 crore in FY22, although it has not yet submitted its annual report for FY24. The company’s losses increased by 89% to Rs 685 crore in FY23, and it still went broke.
Waycool, which was started by Karthik Jayaraman and Sanjay Dasari, purchases fresh produce—including dairy products—from farmers and distributes it to stores and eateries. In addition, it manages distribution for FMCG companies and operates private label brands.
This marks the second significant layoff in the agritech sector, following the nearly 80% workforce reduction at ReshaMandi.
In the first half of 2024, agritech received among the least amount of funding. Media-compiled data shows that, out of 22 deals, agritech startups raised a mere $94 million, or just 1.34% of total funds raised during H1 2024.
