WayCool to enter West Asia, lines up $100 million capex over four years

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July 09, 2021 2:45 AM

Jayaraman said WayCool Foods has touched an annual recurring revenue of Rs 1,000 crore this fiscal and is making operational profits with limited monthly cash burn.

Largely a South India focused company, WayCool is getting into Maharashtra in a major way as it sources good number of items from there.Largely a South India focused company, WayCool is getting into Maharashtra in a major way as it sources good number of items from there.

Chennai-based agri-commerce start-up WayCool Foods & Products will be venturing into West Asia market, besides Maharashtra in India, as part of its expansion and has lined up a capex of $75-100 million over a period of four years. The company, majorly a B2B player, will increase its headcount from the current 1,250 to 3,000 in a couple of year’s time.

Karthik Jayaraman, CEO and co-founder, WayCool, told mediapersons over a virtual meet that the entry into the West Asia market is logical as the region is seeking partnerships with India and a large number of Indian diaspora is present. “We have started working with some partners in the West Asia,” he said.

Largely a South India focused company, WayCool is getting into Maharashtra in a major way as it sources good number of items from there.

The company sources from farmers/farmer producer organisations directly and supplies to retail outlets/bulk buyers in the southern markets and is also in the retail space with its SunnyBee retail outlets.

Jayaraman said the company will be investing in players having complementary capabilities and discussions are on with a couple of players. He said over the next four years, the company will be spending about $75-100 million for strengthening the automation in dry items, warehouses, making the IT platform scalable, developing value added food products and acquisitions.

“We have started talks with potential investors for the next round of fund-raise,” he said.

In the near term, WayCool Foods will beef up its network of warehouses for dry groceries, repacking facilities in and around Tamil Nadu and Bengaluru, distribution and collection centres.

Jayaraman said WayCool Foods has touched an annual recurring revenue of Rs 1,000 crore this fiscal and is making operational profits with limited monthly cash burn.

WayCool’s technology platforms as well as industrial automation solutions have been built by their 150 person in-house technology team. The company has recently launched their branded range, with brands such as Madhuram, Freshey’s, and Kitchenji across several key markets.

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