Lightrock-backed agritech platform WayCool on April 21 said it has created a wholly owned subsidiary for its FMCG business BrandsNext in an attempt to focus on the segment and boost its efforts towards profitability.
During a media briefing, WayCool Managing Director Karthik Jayaraman said that the new corporate entity has been created to attract the right talent and skillset to help the segment grow.
“We decided to create a separate entity after realising that the value that is being created across the supply chain at WayCool, is not being realised by our consumers... It is much more important and urgent to create this entity in the current situation,” said Jayaraman, in a response to a query about creating a subsidiary during a tough macro environment.
Chennai-based WayCool was founded by auto industry veteran Jayaraman and Sanjay Dasari in 2015 as a social enterprise and agritech company. It later diversified into agri-products.
WayCool entered the consumer packaged goods business in 2018 through brands such as Madhuram, a rice brand, Kitchenji, a staples brand, and Freshey's, ready-to-cook products from batter to value-added products. Waycool said the new entity BrandsNext will continue to add more brands that make up a South Indian thali.
In a statement, the company also said it has appointed BP Ravindran as the chief executive officer of BrandsNext, who will spearhead BrandsNext actions and long-term plans, from product innovations to category expansions and more.
“Since BrandsNext will look at a different kind of business than WayCool’s main operations, we need different heads including sales, marketing, and product development to run the FMCG business… There will be no change in the shareholding pattern, as BrandsNext is a wholly-owned subsidiary. The company will be internally funded by WayCool as of now,” said Ravindran.
“I am confident that the transformation to be carried out by BrandsNext will help us in the journey of building super brands in the commodity space that benefits every stakeholder in the ecosystem."
In June, last year the company raised an investment of up to $40 million, led by global investment firm 57 Stars LLC, amid a bleak startup funding environment.
This also came a few months after it closed a $117-million Series D round led by existing and new investors including LightRock, LightBox, and FMO in January, earlier in the year.
The company has also raised venture debt funds from Trifecta Capital and Stride Ventures since the last equity round.
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