FMO to invest in fresh-produce distributor Waycool Foods
Photo Credit:

FMO, the Netherlands’ development finance company, said on Thursday it plans to invest $5.2 million (Rs 37.31 crore) in fresh-produce distributor Waycool Foods & Products Pvt. Ltd.

The proposed funding will support Waycool's operations and expansion plans, FMO said in a statement. Chennai-based Waycool is also likely to use the capital to meet its capital expenditure and working capital needs, it added.

The investment proposal from FMO comes just less than a year after Waycool in January raised Rs 120 crore ($16 million) in debt and equity from investors led by Zurich-headquartered LGT Impact. Besides LGT, institutional lenders Northern Arc Capital and Caspian had also participated in the round.

Waycool was founded by Karthik Jayaraman, Sanjay Dasari, Vignesh Kumar Manogaran and Sendhil Kumar Natarajan in 2015. The company sells its products under the brand name SunnyBee.

The company sources fruit and vegetables from small farmers and aggregators and sells through multiple distribution channels including local shops, retail outlets, hotels, restaurants and catering establishments.

Waycool competes locally with the likes of fresh-produce supply chain management startup Freshboxx Ventures and Ooty-based Lawrencedale Agro Processing India Pvt. Ltd.


The Dutch development bank finances projects through equity and debt instruments in sectors such as agri-business, food and water, energy and financial institutions in underserved regions. It has been an active investor in India.

Late last month, FMO said it would invest $40 million in debt in non-banking finance company Ess Kay Fincorp Ltd. In September, it proposed a €7.50 million ($8.29 million) investment in Sahyadri Farmers Producer Co. Ltd.

In August, FMO proposed a $42 million (around Rs 290 crore) investment in social-impact investor and asset manager Aavishkaar Venture Management Services Pvt. Ltd; and a $15 million (about Rs 107 crore) investment in the third fund of mid-market private equity firm BanyanTree.

Also in August, it proposed to invest $15 million (Rs 107.4 crore) in the fourth fund of Indian impact investor Lok Capital.

Its other bets include a debt investment of $30 million (Rs 209 crore) in Kolkata-based Srei Equipment Finance Ltd and an investment in Nomisma Mobile Solutions Pvt. Ltd, which owns digital payments and loans platform Ftcash.

Leave Your Comment(s)