Chennai-based agriculture supply-chain startup, WayCool Foods, has laid off over 200 employees across various departments. This is the company’s third round of layoffs within the past year.
The latest round of layoffs has impacted employees in Chennai, Bengaluru, Hyderabad and its subsidiaries, CensaNext and BrandNext, as reported by Moneycontrol.
The recent layoffs are part of the company’s ongoing efforts to streamline operations and reduce losses as it grapples with a funding crunch. Previously, WayCool laid off more than 300 employees in July last year, followed by the termination of 70 staff members in February this year.
Financial difficulties for the company have also worsened, leading to delayed salaries and client payments. Furthermore, in addition to salary delays, unpaid dues to vendors, including millers, logistics partners and service providers, have further exacerbated the situation.
WayCool has acknowledged the layoffs, attributing them to its ongoing restructuring efforts aimed at achieving profitability. The company mentioned that each of its businesses is implementing plans to reach profitability, with roles and structures being further simplified and automated as part of this process. However, the firm did not disclose the exact number of employees affected.
WayCool has been seeking bridge funding from existing investors since November last year to address its liquidity challenges. In 2023, the company’s attempt to raise $50-70 million at a $900 million valuation was impacted by the funding winter, forcing WayCool to reduce employee costs and extend its financial runway.
Founded by Sanjay Dasari and Karthik Jayaraman, WayCool started in 2015 as a supply chain business for agricultural products. It ventured into the consumer-packaged goods space in 2018 with brands such as Madhuram, Kitchenji and Freshey’s. The firm later 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 runs a supply-chain tech platform called Censa.
