Chennai-based agritech startup WayCool Foods has laid off over 200 employees after struggling to secure new funding. This follows previous layoffs of more than 300 employees in July last year and 70 in February this year.
According to reports by Moneycontrol, the company has faced delays in salary payments, with June payslips yet to be processed, and has been unable to pay vendors and logistics partners due to a freeze in client payments.
When approached for a statement, WayCool responded that each of its business units is focusing on profitability, with roles and structures being streamlined and automated as part of this ongoing effort. The funding crisis has impacted employees across its Chennai, Bengaluru, and Hyderabad offices, as well as its subsidiaries CensaNext and BrandNext.
Despite these challenges, WayCool has reportedly secured 75% of the capital in its ongoing $40 million bridge round and aims to complete fundraising by August, which it hopes will provide the necessary runway to reach cash profitability.
According to The Kredible, WayCool’s revenue from operations grew by 62% to ₹1,251 crore in FY23, up from ₹772 crore in FY22. However, high costs led to an 89% increase in losses, amounting to ₹685 crore.
Online reactions to the news have been largely negative.
One user wrote, “Hahaha! WayCool was doing shady business. In the agri sector, it’s all about perishable goods and cash flow.”
Another commented, “Why hire if they can’t sustain the business? With the Angel tax now gone, expect more startups to pop up overnight and layoffs to happen during the day. This is a sham and a scam!”
A third user added, “More layoffs expected.”