Chennai-based agritech startup WayCool has successfully raised ₹38.2 crore ($4.4 million) in a Series B funding round, led by Trifecta Capital with participation from Alteria Capital and Stride Ventures. The funding, structured as optionally convertible redeemable preference shares (OCRPS), was finalized through a resolution passed on December 30, 2024.
This investment comes as part of WayCool’s broader financial strategy, following recent debt funding of ₹110 crore from Grand Anicut. The latest round sees Trifecta Capital contributing ₹21.2 crore, Alteria Capital investing ₹9.3 crore, and the remainder coming from Stride Ventures.
“This funding round represents a strategic pivot in our growth journey,” states Karthik Jayaraman, Co-founder and CEO of WayCool. “We’re focusing on sustainable expansion while optimizing our operations to build a more resilient business model in the agritech space.”
The investment marks a significant shift in WayCool’s funding approach, with the company securing approximately ₹275 crore ($32 million) in debt financing over the past four months alone. This change in strategy comes after the company’s previous attempts to raise a larger equity round of $50-70 million at a $900 million valuation were impacted by the ongoing funding winter.
WayCool, founded in 2015 by Karthik Jayaraman and Sanjay Dasari, has established itself as a key player in Tamil Nadu’s agritech sector, operating seven different food product labels while providing comprehensive supply chain solutions. The company has been working on streamlining its operations, having undergone significant organizational restructuring in 2024.
Rahul Khanna, Managing Partner at Trifecta Capital, comments, “WayCool’s pivot towards operational efficiency while maintaining growth demonstrates the maturity needed in today’s market. Their strong presence in Tamil Nadu’s agricultural supply chain makes them a crucial player in the region’s food security infrastructure.”
The funding comes at a critical time for Tamil Nadu’s agritech ecosystem, which has seen growing interest from investors despite market challenges. Recent data from the Tamil Nadu Startup and Innovation Mission shows that agritech startups in the state have attracted over ₹800 crore in investments during 2024, with WayCool’s funding contributing significantly to this figure.
For the broader Tamil Nadu startup ecosystem, WayCool’s successful fundraise demonstrates the continuing appetite for investment in companies that are adapting to market conditions while maintaining focus on fundamental business metrics. The company’s shift towards debt financing could also set a precedent for other growth-stage startups in the region exploring alternative funding routes.
WayCool plans to utilize the fresh capital for strengthening its supply chain infrastructure and expanding its technology platform. The company currently serves over 100,000 clients across South India and aims to deepen its presence in existing markets while focusing on achieving profitability.
The investment also highlights the evolving nature of startup funding in Tamil Nadu, with a growing emphasis on sustainable growth and operational efficiency over rapid expansion. Industry experts suggest this could mark a broader shift in how regional startups approach their growth and funding strategies.
