top of page
-

Agritech company Waycool has let go of over 200 workers.



Waycool, an agriculture supply chain firm, has laid off over 200 employees across various departments as it pursues profitability. This marks the third round of layoffs for the Chennai-based company. A spokesperson for Waycool stated that the company is streamlining roles and structures, a process that will continue. The company did not disclose the exact number of layoffs. Previous rounds of layoffs occurred in July 2023 and February 2024, affecting more than 370 employees.

According to Moneycontrol, which first reported the news, the layoffs impacted employees in Chennai, Bengaluru, and Hyderabad, as well as at Waycool’s subsidiaries, CensaNext and BrandNext. Entrackr sources indicated that Waycool was negotiating a new funding round of over $50 million, potentially boosting its valuation to between $900 million and $1 billion, but the talks fell through. The company's last equity round valued it at $700 million.

To date, Waycool has raised approximately $160 million from investors such as Lightrock, International Finance Corporation, FMO, and 57 Stars. Despite a 62% increase in operating revenue to Rs 1,251 crore in FY23 from Rs 772 crore in FY22, the company’s losses grew by 89% to Rs 685 crore in FY23. Waycool, founded by Karthik Jayaraman and Sanjay Dasari, purchases fresh produce, including dairy products, from farmers and sells them to retailers and restaurants. It also operates private label brands and distributes for FMCG companies.

This is the second significant layoff in the agritech sector, following ReshaMandi’s reduction of nearly 80% of its workforce. Agritech startups received minimal funding in the first half of 2024, with only $94 million raised across 22 deals, representing just 1.34% of the total funds raised in H1 2024, according to TheKredible.




2 views0 comments

Comments


bottom of page