- The agriculture supply chain firm, Waycool, has conducted three rounds of layoffs
- Despite increased revenue, Waycool’s losses have surged significantly, forcing the company to prioritize profitability over growth
- The company’s attempt to secure a $50 million investment to boost its valuation was unsuccessful, contributing to its financial difficulties
- The broader agritech sector is facing a funding crunch, with overall funding down 86% in the first half of 2024 compared to the previous year.
The agriculture supply chain firm Waycool has laid off over 200 employees across departments as the company sees profitability as a priority. This is the third round of layoffs at the Chennai-based company.
“Each of WayCool’s businesses is executing their plans to reach profitability. As part of this, roles and structures are further The company did not comment on the number of employees being fired. The previous two firings took place in July 2023 and February this year in which more than 370 employees were given pink slips.
Moneycontrol reported the development first and said that the layoffs have impacted employees across Chennai, Bengaluru and Hyderabad, and its two subsidiaries: CensaNext and BrandNext.
As per Entrackr sources, Waycool was negotiating a fresh round to the tune of more than $50 million which could have propelled its valuation in the range of $900 million to $1 billion. However, the talks did not go through. The firm was valued at $700 million in its last equity round.
Waycool has raised around $160 million in funding to date from Lightrock, International Finance Corporation, FMO, and 57 Stars, among others.
Earlier this week, Entrackr had highlighted Waycool’s struggle to scale and failing to raise a new round. While the company is yet to file its annual report for FY24, it registered 62% growth in its operating revenue to Rs 1,251 crore in FY23 from Rs 772 crore in FY22. The firm continued to bleed as its losses surged by 89% to Rs 685 crore in FY23.
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.
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This is the second major layoff in the agritech space after ReshaMandi which sacked almost 80% of its workforce.
Agritech was one of the least funded segments during the first half of 2024. As per data compiled by TheKredible, agritech startups raised only $94 million across 22 deals, accounting for only 1.34% of the overall fundraising during H1 2024.
Read more: Village Capital Invests $850,000 in Kenyan and Nigerian Agritech
