WayCool Layoffs: Agritech Start-up Cut Jobs Of Over 200 Employees, Says Report

According to the report, the most recent round of layoffs has impacted employees across multiple locations, including Chennai, Bengaluru, and Hyderabad, as well as within its subsidiaries

Chennai-based agriculture supply chain start-up WayCool Foods has reportedly laid off over 200 employees across various departments. This marks the third round of layoffs in the past 12 months. The company is taking these measures to streamline operations and reduce losses while facing challenges in securing funding, according to a Moneycontrol report citing sources.

The Lightbox-backed start-up cut over 300 positions in July of the previous year, followed by a reduction of 70 staff members in February.

According to the report, the most recent round of layoffs has impacted employees across multiple locations, including Chennai, Bengaluru, and Hyderabad, as well as within its subsidiaries, CensaNext and BrandNext.

It indicates that the company is grappling with increasingly severe financial challenges. These difficulties include delayed salary payments to staff and overdue client payments, further exacerbating the company's financial strain.

“Salaries have faced delays in the past, and the company has yet to process the payslips for June. Additionally, funding has dried up, and client payments are stuck,” two sources said in the report.

The financial strain has been compounded by unpaid dues to various vendors, including millers, logistics partners, and service providers like SGSs. “Vendor payments were made in rotation over the past three months, but this has completely stopped since June as collections from clients has been delayed,” it added.

WayCool Foods has acknowledged these layoffs as part of its ongoing restructuring efforts to achieve profitability. “Each of WayCool's businesses is executing their plans to get to profitability. As part of this, roles and structures are further simplified and automated. This will be a continual process,” the company stated in a written response to Moneycontrol.

The company did not specify the exact number of employees affected by the layoffs.

Regarding the funding crunch, WayCool reported that it has secured 75 per cent of the capital needed from its ongoing bridge round of $40 million and expects to complete the fundraising by August. The firm is optimistic that this funding will provide the necessary runway for cash profitability.

“The company’s focus continues to be on the growth of brands and their establishment as true consumer brands. 45 per cent of revenues in FY24 came from brands, a share that continues to increase,” the firm added.