Amid its financial woes, agri-tech start-up Waycool Foods is said to have appointed a new CEO to steer the company back on growth path. The move comes at a time when automotive veteran and former Royal Enfield CEO Vinod K Dasari has approached the National Company Law Tribunal (NCLT), Chennai and the petition is listed for appearance on Thursday (March 13).
Dasari is listed as a director at WayCool as per its FY23 financials. His son Sanjay Dasari is also one of the original co-founders of the start-up, but he left the company last year.
New CEO
Subramanian Srinivasan, a FMCG executive who worked previously at Preethi Kitchen Appliances, Marico and other firms, is the new CEO of WayCool, sources in the know said. His focus will be in driving the start-up’s consumer goods business for overall growth. This will also help WayCool Co-Founder Karthik Jayaraman focus on driving the company’s fundraising efforts and monetise the various subsidiaries, the sources added.
As for Dasari’s plea, sources said it relates to amounts he loaned the start-up, the value for which could not be ascertained. “The case comes up for hearing on Thursday and it is likely that more people, including employees and vendor partners, may join in depending on how it pans out,” one of the creditors of WayCool said.
Financial stress
While WayCool started as an agri and supply chain tech start-up that sold to B2B customers, the company later developed its own consumer brands for staples, fresh produce and dairy products such as Madhuram, KitchenJi, Freshey’s, and others. The Chennai-based start-up has been under financial stress and undertaken rounds of layoffs in the last one year. Former employees that businessline spoke to said that variable pay of over two years and full and final settlements also have been pending. The company is also working to settle payments to vendors and other partners.
WayCool representatives declined to comment. businessline’s queries to Vinod Dasari and WayCool’s investor Lightrock also remain unanswered at the time of print.
Backed by VC firm Lightrock, Lightbox, International Finance Corporation, FMO, and others, WayCool has raised over $200 million till date and has been trying to close new equity funding for over two years now. The start-up, however, was able to recently raise debt from Grand Anicut by way of non-convertible debentures at a steep interest rate. As per its FY23 financials sourced from PrivateCircle, WayCool recorded consolidated revenue of ₹1,251 crore. The company had eight subsidiaries as of FY23.
Waycool was valued close to $800 million in its last round. Lightrock and Lightbox together hold around 60 per cent stake in the start-up and are said to be closely involved in operations currently. There were over 1,500 employees at its peak but now it’s less than 500.
