Mud, slush, dirt, rotting vegetables form the scene at wholesale markets like Koyamedu, Pookadai. Sacks of fresh vegetables stored in warehouses in unhygienic conditions.
“Vegetables supplied to restaurants and B2B organisations are stored in substandard conditions FOR and I wanted to AND change that,” said Sanjay Sanjay Dasari, cofounder, Waycool, which has 450 B2B customers. The 24-year-old Dasari took a shot at entrepreneurship after graduating in finance and strategic management from Babson College near Boston.
Setting up the company WayCool in July 2015, Dasari partnered with Karthik Jayaraman, a specialist in cold-chain storage. Other experienced hands such as Ashok Leyland MD Vinod Dasari and Cavinkare’s C K Ranganathan advise the startup and hold positions on its board.
In its initial months the team had to cope with the 2015 deluge. “Luckily, one of our early investors had a house on a higher level and we were able to save our fresh stock of vegetables. We also faced initial problems in understanding the nuances of the industry,” added the co-founder.
Leveraging their USP — fresh vegetables, including exotic varieties like artichoke, broccoli, with minimal wastage (5%) at competitive prices — the startup has opened five retail outlets in Chennai under the name SunnyBee. Apart from retail customers, they also supply to restaurants and catering companies; sourcing from farmers in 10 states. The team visits farms each month for quality checks.
“We have over 20,000 farmers on board. By tying up with us, we have increasing their earnings by 25%. We have also made it a point to network with small farmers rather than larger establishments; about 45% of our produce comes from farmers having under two acres of land,” added Dasari.
Giving credit where its due and also ensuring source transparency, the firm provides information about the origin of the produce and details of the farmer to customers. It adds to the credibility of the brand and brings in repeat customers, they say. Waycool’s emphasis on hygiene does not end with the store, they engage with people on social media to highlight the extent of the problem. “We urge netizens to upload pictures with #spotted when they witness instances of vegetables and fruits being stored or transported in an unhygienic manner,” said Dasari. Latha Rajasekar, a regular customer, says, “I appreciate that in a market where dealers add artificial preservatives and dye vegetables to give them a fresh look, SunnyBee is 100% transparent. I feel safe consuming their products.” Transparency and low wastage also draw investors. Chief financial officer of Aspada Investments Kushal Agrawal said, “Structural challenges in India’s fresh produce supply chain, comprised of multiple intermediaries, lead to significant wastage (>30% by volume), lower prices for farmers, and poor quality produce at a high er price. As a sophisticated post-harvest supply chain firm WayCool is addressing these challenges with fewer intermediaries and careful handling of produce, thereby catering to a rapidly growing urban middle-class that demands safe, high-quality fresh fruits and vegetables.”
In the future, the company plans to open a B2C retail outlet a month and bring in hyper exotic vegetables.
(This series captures the startup ecosystem in the state)
source: http://www.timesofindia.indiatimes.com / The Times of India / News> City News> Chennai News / by Aparna Desikan / TNN / November 27th, 2017