Chennai-based agriculture supply-chain startup WayCool Foods has recently laid off over 200 employees in various departments across Chennai, Bengaluru, Hyderabad, and its subsidiaries, CensaNext and BrandNext. This marks the company’s third round of layoffs in the past year. The layoffs are part of WayCool’s effort to streamline operations and reduce losses amidst financial difficulties and a funding crunch. Previous layoffs included more than 300 employees in July last year and 70 staff members in February this year.
The company’s financial challenges have led to delayed salaries and client payments. Additionally, it has unpaid dues to vendors such as millers, logistics partners, and service providers. WayCool mentioned that these layoffs are part of its ongoing efforts to achieve profitability by simplifying and automating roles and structures. However, the exact number of affected employees was not disclosed.
WayCool has been seeking bridge funding from existing investors since November last year to address its liquidity challenges. In 2023, the company attempted to raise $50-70 million at a $900 million valuation but was impacted by the funding winter, leading to cost-cutting measures and extending its financial runway.
Established in 2015 as a supply chain business for agricultural products, WayCool later expanded into the consumer-packaged goods space in 2018 with brands such as Madhuram, Kitchenji, and Freshey’s. It spun off its FMCG business into a new entity called BrandsNext, which now houses about seven brands, including L’exotique, Dezi Fresh, AllFresh, and Just Potate. WayCool also operates a supply-chain tech platform called Censa.
