Sanjay Dasari, Co-founder of WayCool Foods has exited the company after a decade-long journey. In a LinkedIn post today, he announced that he will be stepping away from the day-to-day operations of the company he helped build and will continue to be an advisor to support strategic projects and fundraising.
Founded in 2015 by Sanjay and Karthik Jayaraman, WayCool Foods has grown to become one of India’s leading agritech startups focused on the supply chain for fresh produce, food and agriculture products. The company has received a lot of attention and investments over the years for its work on improving the agricultural ecosystem. But in his post, Sanjay said it’s time for him to take a break and explore new opportunities. His next stop will be San Francisco where he will be operating, investing, angel investing and mentoring in the startup ecosystem.
Sanjay’s exit is a big change for WayCool but he will continue to be involved with the company. As an advisor, he will be helping with strategic decisions and fundraising. His role will allow him to be part of the company’s growth journey but from a distance and focus on the big picture.
WayCool Foods is based out of Chennai and has been going through some tough times lately with fundraising and financial management being the biggest challenges. Despite these challenges, the company has shown remarkable resilience. Earlier this year WayCool raised Rs 100 crore in debt from Grand Anicut to refinance existing borrowings and manage working capital. The company also approved a capital infusion of Rs 100 crore through the issue of 1,000 Series B6 debentures at Rs 10 lakh each. These debentures have a coupon rate of 18% per annum and a maturity period of 18 months. This is to strengthen the company’s balance sheet in these tough times.
Apart from these financial moves, WayCool had to do some cost-cutting including layoffs to stabilize the business. The company was under financial strain due to delayed client payments, vendor liabilities and logistics issues. Reports also suggested that the company was delayed in paying employee salaries which is a sign of a cash flow crunch.
Despite the financial challenges Sanjay’s farewell post was optimistic and highlighted the company’s progress and achievements over the years. According to Sanjay WayCool has reached CM3 (contribution margin) profitability which covers both fixed and variable costs. He mentioned the company’s resilience in the face of many challenges including a flood just 6 months after the company was founded, a cyclone and the global pandemic that wiped out 95% of the company’s revenue. Through all these tribulations, WayCool has always emerged effective, stronger, and ready to continue its mission-the revolution of the agricultural supply chain.
Dasari’s posts in honour of the company’s journey salute the effort, sacrifice, and obstacles overcome by the WayCool team. From being a fleet of a few grocery food trucks to establishing a full-fledged agritech company, it really all has been a phenomenal journey. With genuine optimism in these tough times, Dasari believed in the future of WayCool and that the team could take on anything that arose.
As Dasari embarks upon the next phase of his professional journey, his legacy in WayCool Foods is well cast. His vision and leadership have been instrumental in shaping the company’s trajectory. In an advisory role, Dasari has assured that his experience remains an asset to the team in navigating an increasingly complex agritech scenario.
Dasari’s departure represents a watershed moment for WayCool Foods. The company is also faced with challenges of an external environment to manage its finances and operations. Such a transition needs to be handled delicately; however, with Dasari’s suitable input and company resilience, WayCool could well continue to be a very promising player in the Indian agritech ecosystem aiming to expand and reach its scope in the sector.
The pathway of WayCool reflects the broader type of challenges many other emerging startups, especially in the agritech space, are faced with. As the playing field evolves, WayCool and similar companies will need to strike a balanced blow between innovation and financial sustainability to properly position themselves for future potential in capturing more opportunities as well as tackling the risks of the volatile environment. WayCool focuses on influencing the entire agricultural supply chain, and it clears up the future, although at the moment some difficult things are on the way.