WayCool Foods receives USD 5.5 Mn debt financing from IndusInd Bank guaranteed by DFC
Jun 10, 2020
Chennai (Tamil Nadu) / Bengaluru (Karnataka) [India], June 10 (ANI/BusinessWire India): U.S. International Development Finance Corporation (DFC) has extended a 100 per cent guarantee to WayCool Foods' latest round of fundraising of USD 5.5 Mn through debt financing from IndusInd Bank Ltd. It follows the Series C round of USD 32 Mn led by Lightbox earlier this year. Setuka Partners LLP was the advisor to the current transaction.
DFC's financing to WayCool comes through IndusInd Bank in the form of a 100 per cent guarantee. The loan is to be deployed through IndusInd Bank's Impact Investing division, which will support WayCool Foods' expansion plans.
WayCool Foods plans to use the funds to introduce advanced technology, implement strict hygiene measures, and increase transportation efficiency to reduce food spoilage and improve farmer yields, thus contributing to food security. This will also allow the company to strengthen food distribution across South India.
Karthik Jayaraman, Co-Founder, and CEO, WayCool Foods said, "WayCool has been steadily building necessary technology and operational capabilities to operate robust agrifood 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, America's development bank, provides financing to address critical challenges across emerging markets globally. The investment in WayCool Foods demonstrates DFC's commitment to supporting India's food and agriculture distribution sector. The investment has been finalized after a stringent due diligence process.
On associating with WayCool Foods, Ajay Rao, Director - Social Enterprise Finance Team, DFC, said, "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."
"The loan is deployed through IndusInd Bank's Impact Investing Group. The DFC guarantee enabled the bank to provide an equivalent of Rs. 35 Crores loan to WayCool, IndusInd Bank said in a statement. The structure is significant as it helps in mobilizing local capital for WayCool, also it eliminates foreign exchange rate fluctuation risk from the balance sheet of WayCool, he added.
WayCool procures, processes, and distributes a range of food products including fresh produce, staples, and dairy products, moving over 250 tonnes of food every day to 8,000 enterprise clients 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 its capital-efficient model by continuing to invest in technology and automation across the value chain.
WayCool has previously raised three rounds of funding from Lightbox, LGT Lightstone Aspada, FMO, Caspian Impact Investment, and Northern Arc Capital Ltd.
This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article (ANI/BusinessWire India)
