Agritech startup WayCool Foods has laid off 150-200 employees in the latest round of restructuring aimed at reducing operational costs and achieving profitability, sources told FE.The recent layoffs have affected employees across various functions in different cities, including those from its subsidiaries BrandsNext and CensaNext, the sources said.This marks the third round of restructuring for the Lightrock India-backed agritech startup in the last 12 months.
Previously, the company reportedly laid off over 70 employees in February and nearly 300 across functions in July last year.According to sources, the Chennai-based agritech firm has also seen senior-level exits, including BP Ravindran, the group president of WayCool Foods and CEO of BrandsNext.
In April 2023, WayCool carved out BrandsNext as a subsidiary to focus on the FMCG business and appointed Ravindran as its chief executive. His exit is a significant blow to WayCool, which is counting on the FMCG business as its biggest growth driver.WayCool did not explicitly mention Ravindran’s departure or the latest restructuring. However, in response to FE’s query, the company said, “There are indeed management changes in line with the above, and successors have stepped in where changes were needed.”
Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool’s core operations are split into two verticals: wet and dry. The wet business includes supplying fresh fruits and vegetables to hotels and kirana shops, while the dry business includes its own brand of FMCG products (BrandsNext), private labelling of unbranded rice, pulses, and cereals for smaller brands, and third-party distribution for FMCG brands like ITC, Unilever, and Nestlé.
The company also owns an IT subsidiary, CensaNext.WayCool was valued at $700 million during its last fundraise in June 2022 and counts Lightrock India, Lightbox Ventures, and Lightsmith Group among its investors. Its revenue from operations grew by 62% to ₹1,251 crore in FY23 from ₹772 crore in FY22. The company is yet to file its FY24 financials.“Each of WayCool’s businesses is executing their plans to achieve profitability. As part of this, roles and structures are being further simplified and automated. This will be a continual process. The company has already received 75% of the capital from its bridge round and will complete the round by August,” the company said in its response.