Chennai-based agritech startup WayCool Foods has announced the launch of a new subsidiary to expand its fast-moving consumer goods (FMCG) business. The new subsidiary, WayCool Foods & Products Private Limited, will focus on manufacturing and marketing of branded food and non-food FMCG products.
WayCool Foods has been operating in the agritech space since 2015, providing a technology-led, supply chain solution to farmers and retailers. The startup procures fresh produce directly from farmers and supplies it to retailers through a network of 45 warehouses and last-mile logistics facilities. WayCool Foods also provides financial and technology support to farmers, helping them to improve their productivity and profitability.
The launch of the new subsidiary is part of WayCool’s strategy to diversify its business and tap into the growing demand for branded FMCG products in India. The startup plans to leverage its existing supply chain and distribution network to launch a range of food and non-food FMCG products, targeting consumers across different segments and price points.
WayCool aims to double its revenue in the next 12-18 months through the new subsidiary, as it looks to establish itself as a leading player in the FMCG space. The startup has set an ambitious target of achieving a revenue of Rs. 1,000 crore ($135 million) by FY 2023-24, through a combination of organic growth and acquisitions. In the next 12-18 months, WayCool plans to launch a range of products across multiple categories and will focus on leveraging technology and data analytics to gain market share. With its new subsidiary, WayCool is also looking to expand into regional markets in India.
The FMCG market in India is expected to grow at a compound annual growth rate (CAGR) of 9-10% over the next few years, driven by the growing middle class, increasing urbanization, and changing consumer preferences. The market is highly competitive, with several established players such as Hindustan Unilever, Nestle, and ITC, as well as a large number of emerging startups and regional players.
WayCool Foods plans to differentiate itself in the market by focusing on quality, affordability, and innovation. The startup aims to offer products that are sourced directly from farmers, with a focus on freshness, taste, and nutrition. It also plans to leverage its technology and data analytics capabilities to improve its supply chain efficiency and reduce costs.
WayCool’s foray into the FMCG space comes at a time when the startup is looking to expand its business and raise capital. The startup has raised over $65 million in equity and debt funding to date, from investors such as Lightbox Ventures, LGT Lightstone, and FMO. It is also reportedly in talks to raise a new round of funding, which could value the startup at over $500 million.
In addition to its FMCG business, WayCool is also exploring other opportunities in the agritech space, including the launch of a B2B marketplace for farmers and retailers, and the expansion of its operations in other states. The startup currently operates in Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana, and plans to expand its presence in other regions, including Maharashtra, Gujarat, and Uttar Pradesh.
In conclusion, WayCool Foods’ launch of a new subsidiary to expand its FMCG business is a significant move that highlights the startup’s ambitions to tap into the growing demand for branded FMCG products in India. With its strong supply chain and distribution network, WayCool is well-positioned to establish itself as a leading player in the market, provided it can differentiate itself through quality, affordability, and innovation. The success of the new subsidiary will be closely watched by investors and industry observers alike, as it could have a significant impact on WayCool’s growth and valuation in the coming years.
