Agri-Tech Startup WayCool Receives $5.5 Million Debt Financing from IndusInd Bank

The 2015-founded agri-tech startup WayCool Foods receives $5.5 million debt financing from IndusInd Bank. US International Development Finance Corporation (DFC) has extended a 100 percent guarantee to this round of fund. DFC’s financing to WayCool comes through IndusInd Bank in the form of a 100 percent guarantee. This loan will be deployed through IndusInd Bank’s Impact Investing division, which will support WayCool’s expansion plans. Earlier this year, WayCool had raised $32 million in round of funding led by Lightbox, while other previous investors include LGT Lightstone Aspada, FMO, Caspian Impact Investment and Northern Arc Capital.

WayCool will use this fund to introduce advanced technology, implement strict hygiene measures, and increase transportation efficiency to reduce food spoilage and improve farm yields. This will ensure more food security and will allow the company to even strengthen food distribution across South India. The company operates a soil-to-sale model, engaging deeply with a base of 40,000 farmers in more than 50 regions across India, while bringing efficiency through its direct supply chain model. The Company plans to accelerate profitability and improve on its capital efficient model by continuing to invest in technology and automation across the value chain.

We are proud to work together with the remarkable team at Way Cool to solve some of the most pressing challenges in Indias agricultural sector.

Karthik Jayaraman, Co-Founder & CEO, WayCool Foods, says, “WayCool has been steadily building necessary technology and operational capabilities to operate robust agri-food supply chains from soil to sale. We welcome DFC and IndusInd Bank as partners in this journey and believe that this partnership is an endorsement of WayCool’s ability to lead transformation within the sector.”

DFC’s (America’s development bank that provides financing to address critical challenges across emerging markets globally) investment in WayCool has been finalized after a stringent due diligence process. Ajay Rao, Director – Social Enterprise Finance Team, DFC, says, “We are proud to work together with the remarkable team at WayCool to solve some of the most pressing challenges in India’s agricultural sector. We look forward to this collaboration during these critical times and are thrilled to support WayCool’s efforts to enhance food security in India.”

In a statement, IndusInd Bank said that the loan is deployed through IndusInd Bank’s Impact Investment Group, and DFC guarantee enabled the bank to provide an equivalent of Rs.35 crore loan to WayCool. The structure is significant as it helps in mobilizing local capital for WayCool. The statement further added that this will also eliminates foreign exchange rate fluctuation risk from the balance sheet of WayCool.