CHENNAI, 24 August 2020: FMO, the Dutch entrepreneurial development bank, has allocated a grant of INR 85 lakh to WayCool Foods, for procurement and distribution of dual-purpose PPE kits and enablement of on-site Soil testing to farmers.
It follows WayCool’s latest Debt Financing round of U$ 5.5 million, which was guaranteed by U.S. International Development Finance Corporation (DFC).
The distribution is being carried out under the Outgrow Program, WayCool's flagship program for farmers. 15,000 small holding farmers across 5 states in India will benefit through this unique initiative.
The dual-purpose PPE kits will help protect farmers during the COVID-19 pandemic, and also shield them during agricultural operations such as pesticide spraying. In-situ Soil testing will enable farmers to get their soil health measured without having to travel, thus facilitating effective soil management while maintaining social distancing.
Speaking on this, WayCool Foods Head-Agri initiatives Sendhil Kumar Natarajan said, “Farmers are essential service providers as they feed the nation. They are also very vulnerable during disruptive events such as the ongoing pandemic. Our measures have focussed on enabling the farmers earn their livelihood while reducing the risks they face. The FMO grant will help us in protecting a significantly larger number of farmers and we thank FMO for their timely support.”
FMO’s grant demonstrates their commitment to supporting communities that require India’s food and agriculture distribution sector.
Making this announcement, Jaap Reinking, Director, Private Equity, FMO said, “We are proud to offer additional support during this period. India has experienced one of the world’s strictest lockdowns. These measures left little recourse for the country’s millions of farmers, particularly those in the poorest provinces, who were unable to get access to essentials and protective equipment. The initiative’s goal is to find affordable and reliable sources of PPE and ensure these are allocated where they are needed most. Additionally, this grant will be used to procure Soil Testing kits for farmers, which will ultimately improve their income and reduce wastage.”
Outgrow is WayCool’s agricultural extension program that engages with farmers through their entire cultivation cycle, from planning to inputs to harvesting, substantially increasing profitability of the farmer, reducing their risk, and guaranteeing farmers 270 days of steady income by leveraging a host of emerging technologies.
The company operates a soil-to-sale model, engaging deeply with a base of 40,000 farmers in more than 50 regions across India, while bringing efficiency through its direct supply chain model. The Company plans to accelerate profitability and improve on its capital efficient model by continuing to invest in technology and automation across the value chain.
WayCool has previously raised three rounds of funding from Lightbox, LGT Lightstone Aspada, FMO, Caspian Impact Investment, and Northern Arc Capital Ltd.
FMO is the Dutch entrepreneurial development bank based out of Hague, Netherlands. FMO invests in over 85 countries, focusing on emerging markets, supporting jobs and income generation, and improving people's lives in those parts of the world where this makes the biggest difference. Their role extends beyond financing, as they help businesses to operate and grow transparently in an environmentally and socially responsible manner.