Exclusive: Waycool in talks to raise over $50 Mn, may become first agritech unicorn

B2B food and agritech platform Waycool is negotiating a fresh round to the tune of more than $50 million, according to three sources aware of the development.

“Waycool is in talks with sovereign and impact funds, and family offices to raise around $50-70 million in equity capital. The company is likely to be valued in the range of 900 million (post-money),” said one of the sources requesting anonymity. 

The Bengaluru-based  startup raised $40 million in June last year followed by a $12 million debt a couple of months later. The company was valued at $700 million during its last equity round.

Waycool’s valuation may touch $1 billion given the company manages to bag more money from the fresh fundraise, sources add.

If this materializes, Waycool will become the first agritech startup in India to join the unicorn club. Currently, Flipkart and Walmart-backed Ninjacart is the top valued startup in agritech space at $915 million followed by Dehaat, which is estimated to be valued at around $700 million. 

Sources further say that the fundraising process may take two to three months to materialize. 

"Fundraising in the form of equity and debt is a continual activity. The company continues to raise funds based on its expansion needs from existing as well as new investors, and has done so recently as well," said a Waycool Foods spokesperson.

Founded by Karthik Jayaraman and Sanjay Dasari, Waycool buys fresh produce, including dairy products, from farmers and sells them to retailers and restaurants. It also runs private label brands and handles distribution for FMCG companies. The company claims to work with more than 150,000 farmers and 100,000 clients.

Waycool has raised approximately $160 million in funding from Lightrock, International Finance Corporation, FMO, and 57 Stars.

WayCool’s revenue from operations spiked 2.4X to Rs 927 crore in FY22 from Rs 382 crore in FY21, according to its consolidated annual financial statements with the Registrar of Companies. Recently, Jayaraman told media that the firm closed FY23 with Rs 2,000 crore topline and is targeting an income of Rs 6,000 crore by FY25.