WayCool Foods, an agriculture and technology firm engaged in food development and distribution on Wednesday said it has received $5.5 million debt financing from IndusInd Bank.
US International Development Finance Corporation has extended a one hundred percent guarantee to the company's latest round of fundraising, a company statement said. Early this year, the company raised a Series C round of USD 32 million led by Lightbox.
It also raised from LGT Lightstone Aspada, Caspian Impact Investment and Northern Arc Capital Ltd, it said. Setuka Partners LLP was the advisor to the current transaction, WayCool Foods said.
The loan would be deployed through IndusInd Bank's Impact Investing division which would support the expansion plans of WayCool Foods.
The company plans to use the funds to implement strict hygiene measures and increase transportation efficiency to reduce food spoilage and improve the yields to farmers among others. "WayCool has been steadily building necessary technology and operational capabilities to operate robust agri-food supply chains.. we welcome DFC and IndusInd Bank as partners in this journey..," WayCool Foods Co-Founder Karthik Jayaraman said.
On their association with WayCool Foods, DFC Director- Social Enterprise Finance, Ajay Rao said, "We look forward to this collaboration during this critical times." WayCool procures, processes and distributes a range of food products including fresh produce, staples and dairy products.
The company engages with 40,000 farmers in more than 50 regions across the country, the statement said.