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Agritech startup Waycool has raised $40 Mn in a strategic funding round led by global alternative investment firm 57 Stars. 

This was the first transaction for 57 Stars’ Direct Impact Fund and the second one for 57 Stars Global Innovation Fund 2. 

“This investment illustrates the continuing confidence of mature global investors in fundamentally sound businesses delivering lasting impact,” Waycool chief financial officer (CFO) Chinna Pardhasaradhi said on the fundraise.

WayCool, founded in 2015 by Karthik Jayaraman and Sanjay Dasari, is an omnichannel full-stack agri-commerce platform that distributes farm-sourced perishables to different retail outlets. The startup also offers products that streamline the supply chain and reduce inefficiencies in food quality management. 

WayCool raised the country’s biggest agritech funding round in January this year as it bagged $117 Mn as part of Series D round. In total, the startup has raised $221.5 Mn in funding so far and is backed by marquee names such as LightRock, LightBox, FMO, Lightsmith, IFC, among others. 

The startup delivers produce to 500 locations across six states and has more than 72 procurement centres across the country. WayCool moves more than 900 tonnes of perishables daily and works with more than 1.5 Lakh farmers. The agritech player has more than 1 Lakh client on its rolls. 

It competes with other major players in the space like Ninjacart, DeHaat, Gramophone, Cropin, FarMart, among others. 

Last month, Union Minister of State Jitendra Singh called agritech startups critical to India’s future economy. Prior to that, Union Minister Piyush Goyal said that the government was mulling setting up a fund to fund agritech startups. 

According to an Inc42 analysis, India had more than 1,000 agritech startups in 2020 and the number has only grown since then.

A Bain & Company report projects India’s agritech market to reach $35 Bn by 2025.

Recently, agriculture-focused deeptech startup Ecozen raised INR 54 Cr as part of its planned INR 200 Cr Series C fundraise. In May, agritech startup Nutrifresh raised $5 Mn from a clutch of institutional investors to fuel its expansion and growth. 

In May, Absolute raised $100 Mn from Sequoia Capital India, Alpha Wave Global and Tiger Global. Another Bengaluru-based agritech startup Agrizy raised $4 Mn in a funding round led by Ankur Capital in April this year.