Agriculture supply chain firm Waycool has announced the termination of over 200 employees as part of its strategy to achieve profitability. This marks the third round of layoffs for the Chennai-based company.
The company previously conducted layoffs in July 2023 and February 2024, resulting in over 370 job cuts. The latest round of layoffs has affected employees in Chennai, Bengaluru, Hyderabad, and its two subsidiaries, CensaNext and BrandNext.
Waycool had been in talks to secure a new funding round of over $50 million, which could have increased its valuation to between $900 million and $1 billion. However, these negotiations did not materialize. The company’s last valuation stood at $700 million. To date, Waycool has raised approximately $160 million from investors including Lightrock, International Finance Corporation, FMO, and 57 Stars.
Despite reporting a 62% increase in operating revenue, from ₹772 crore in FY22 to ₹1,251 crore in FY23, Waycool’s losses surged by 89%, reaching ₹685 crore in FY23. The company has not yet filed its annual report for FY24.
Founded by Karthik Jayaraman and Sanjay Dasari, Waycool focuses on buying fresh produce, including dairy products, from farmers and distributing them to retailers and restaurants. It also operates private label brands and manages distribution for FMCG companies.
Waycool’s layoffs follow a similar trend in the agritech sector, where ReshaMandi recently reduced its workforce by nearly 80%. Agritech startups have struggled with funding, raising only $94 million across 22 deals in H1 2024, according to data from TheKredible, representing just 1.34% of overall funds raised.
The layoffs at Waycool reflect broader challenges in the agritech industry as companies strive to balance growth with financial sustainability.
