Akshata Sharma
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Chennai-based startup WayCool Foods has laid off over 200 employees after failing to secure funds. The agritech laid off over 300 employees in July last year and 70 staff members in February this year.
"Salaries have been delayed in the past, and the company is yet to process the June payslip. Funding has dried up, and the payments from clients are stuck," Moneycontrol reports.
The situation worsened after WayCool failed to pay dues to vendors, including millers, logistics partners. Also, vendor payments have completely stopped since June due to delayed client collections.
"Each of WayCool's businesses is working towards profitability. Roles and structures are being simplified and automated as part of this ongoing process," the company told the news portal.
The funding freeze has affected employees across Chennai, Bengaluru and Hyderabad, and its subsidiaries -- CensaNext and BrandNext. Waycool has been trying to raise funding from existing investors since November last year.
On that note, the company said it has secured 75% of the capital from its ongoing bridge round of $40 million. It will complete the fundraising by August, which it believes will provide a sufficient runway to reach cash profitability.
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