Agritech startup WayCool has joined the ranks of Indian startups affected by the ongoing funding winter, as it reportedly laid off 300 employees in a recent restructuring exercise. According to sources cited by TOI, the company, which has raised over $350 million in funding, conducted the layoffs with the aim of pursuing profitability.
Restructuring Updates Await Impacted WayCool Employees
With around 2,500 employees at WayCool, some have chosen to resign, while others were informed that updates on the restructuring would be shared on Wednesday, July 12. In a video address on Monday, July 10, Karthik Jayaraman, the cofounder and MD of WayCool, communicated the decision to the employees, emphasizing the company’s goal to achieve profitability by December.
WayCool Implements Additional Measures and Delays Variable Payout
Apart from the layoffs, WayCool plans to shut down certain distribution centers and experimental projects. Sources also revealed that the agritech startup informed employees that variable payouts would be delayed. When approached by TOI for comments, a spokesperson from WayCool stated that the company intends to focus on its core and profitable businesses, slowing down on experimental initiatives to ensure long-term success.
WayCool’s Financial Struggles Amidst Funding Rounds
WayCool’s recent layoffs came after it raised $117 million from renowned investors, including Lightrock, International Finance Corporation (IFC), and Redwood, in January 2022. The startup’s valuation reached approximately $700 million. Throughout 2022, WayCool secured an additional $47 million from investors such as 57 Stars and Stride Ventures. Currently, the company is reportedly in discussions to raise between $50-70 million in a new funding round at a unicorn valuation.
However, WayCool continues to grapple with losses. In the fiscal year 2022, its net loss skyrocketed by 142% YoY to INR 360.5 crore, while operating revenue surged 2.4 times to INR 926.9 crore compared to INR 382.3 crore in FY21.
Founded in 2015 by Karthik Jayaraman and Sanjay Dasari, WayCool operates as a full-stack agritech platform, connecting farmers with retailers, traders, and processors. The company also provides SaaS products for various domains, including procurement, processing, warehousing, and distribution.
The layoffs at WayCool reflect the challenging environment within India’s startup ecosystem, characterized by reduced funding and increased macroeconomic pressures. Many companies, including Ola, Swiggy, Zomato, BYJU’S, Vedantu, and Unacademy, have resorted to layoffs as investors increasingly demand profitability from marquee startups. Since the start of 2022, more than 100 startups have reportedly fired over 27,300 employees, highlighting the need for sustainable business models in the current landscape.
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