Exclusive: Waycool to acquire a majority stake in SV Agri

Chennai-based agri-commerce startup WayCool Foods is all set to take over SV Agri, the Pune-based fully integrated player in the potato supply chain ecosystem. The Lightbox-backed company had recently invested $7.5 million in SV Agri to leverage their strong supply chain eco-system.

Established in 2008, SV Agri or  Siddhi Vinayak Agri Processing Pvt. Ltd. has been focused on the potato ecosystem in India. From producing high quality and innovative variety of seeds and providing potato storage & supply solutions to engineering best in class processing technologies, the firm is a familiar and well-established player today. Waycool of course started later in 2015, with a focus on building a food development and distribution services model.

Waycool will buy all Series A preference shares, equity shares, Series B and Series C shares from investor Aspada for Rs 12.75 crore, regulatory filings show. Similarly, it will buy out Series A preference shares worth Rs 8.6 crore from Song Investment and Series A preference shares, equity shares, Series B shares from Sarva Capital for Rs 11.85 crore.

While the buyout from Aspada is via share swap deal, the other two buyouts are through cash consideration.

The filings further indicate that Waycool will infuse Rs 37.5 crore via compulsorily convertible debentures in SV Agri. As per Fintrackr’s estimates, Waycool shall acquire around 65% stake in SV Agri on a fully diluted basis and SV Agri will be valued at around Rs 115 crore or $16 million (post money).

As per Entrackr’s sources, the management at SV Agri will stay and it will remain a separate company with strategic partnerships. “All existing VC and PE investors in SV Agri will exit. Only Waycool’s promoters and ESOP pool will remain on the cap table, said a person on the condition of anonymity.

Entrackr has sent queries to Waycool and SV Agri. We’ll update the post in case they respond.

Founded by Karthik Jayaraman and Sanjay Dasari, WayCool had closed its $117 million Series D round in January from LightRock, LightBox, FMO, Lightsmith, World Bank Group’s IFC, Redwood Equity Partners and Gawa Capital.

During the first investment round in SV Agri, Waycool had said that the Hemant Gaur-led company will leverage their strong supply chain eco-systems and boost the quality and supply of potato seed, storage and processing across India.