WayCool, an agritech startup based in Chennai, is facing tough times after terminating more than 200 workers in several departments during the previous month. This is the third round of layoffs in the company’s history, which raises questions about its financial stability.
Financial Difficulties and Restructuring
The layoffs align with claims that WayCool’s financial problems are growing worse. Payroll delays, late client payments, and unpaid vendor invoices are revealed by reliable sources that have in-depth knowledge of the business. The company asserted that the continued efforts to achieve profitability through restructuring were the cause of the job losses. The precise number of impacted employees is still unknown, though.
Funding Crunch and Bridge Round
There are hints that WayCool’s financial issues are becoming more severe concurrently with the layoffs. The family of the company assert that there have been delays in wages, underpaid vendor invoices, and late customer payments. The layoffs, according to the corporation, are a result of continuing restructuring measures meant to increase profitability. The precise number of impacted employees is still unknown, though.
Losses Widen Despite Cost-Cutting
Despite cost-cutting measures like layoffs, WayCool’s financial situation appears strained. While their FY24 financials are yet to be released, FY23 data shows a 62% increase in revenue but an alarming 89% jump in losses. The overall expenses also rose significantly, highlighting the company’s struggle to control costs.
FMCG CEO Departs
Adding to the company’s woes is the departure of BP Ravindran, the CEO of WayCool’s FMCG arm, BrandNext. While WayCool hasn’t explicitly confirmed this, their statement about management changes indirectly suggests it.
Future Uncertainties
WayCool’s future remains uncertain. The latest bridge round may provide temporary relief, but their ability to achieve profitability and secure long-term funding is unclear. The company’s struggles reflect the challenges faced by many agritech startups in the current economic climate.
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