Aspada Investment Company has made a $2.7 million investment in Chennai-based Waycool Foods and Products PrivateLimited (Waycool)
Waycool is a fresh produce distribution company that sources fruits and vegetables from small-hold farmers and aggregators and sells through multiple distribution channels spanning small local shops, modern retail outlets, and HORECA (hotels, restaurants and catering establishments). Waycool currently operates predominantly in Tamil Nadu via a distribution hub in Chennai.
With Aspada’s investment, Waycool will extend its reach to other major cities, including Bangalore and Hyderabad, build atechnology platform to reduce inefficiencies in the supply chain, and augment the company’s existing infrastructure.
Aspada’s investment in Waycool adds significant operating expertise and logistics management to an already extensiveportfolio of fresh fruit and vegetable and supply chain companies.
Karthik Jayaraman, Co-Founder & CEO, Waycool, said, “India is the second-largest producer of fruits and vegetables in the world, and presents a significant opportunity for private players to profitably organize perishable produce value chains. Our partnership with Aspada will allow us to leverage not only their cumulative expertise in India’s horticulture value chains, but also their sizable portfolio of fresh produce companies.”
Kushal Agrawal, Chief Financial Officer, Aspada, said, “Structural challenges in India’s fresh produce supply chain, comprised of multiple intermediaries, leads to significant wastage (>30% by volume), lower prices for farmers, and poor quality produce at a high relative price. As a sophisticated post-harvest supply chain firm Waycool will address these challenges through disintermediation and careful produce handling, thereby catering to a rapidly growing urban middle class, which increasingly demands safe, high-quality, and traceable fresh fruits and vegetables. Aspada has carefully curated an extensive portfolio of fresh produce value chain companies focused on specific fruits and vegetables, such as LEAF (carrots and other exotic vegetables), InI Farms (pomegranates, bananas, and pineapples), AllFresh (apples and citrus fruits), and SV Agri (potatoes). We believe that a distribution focused player such as Waycool which leverages technology to drive down overall cost-to-serve in the agricultural value chain makes for a logical addition to our portfolio.”