Chennai-based WayCool Foods acquires stake in Freshey's

WayCool Foods & Products has acquired a 'significant' equity stake in Benani Foods Pvt Ltd that sells ready-to-cook products under Freshey's brand.

Chennai-based food supply chain firm did not disclosed the quantum of the equity stake acquired by it and the deal value.

"The company has acquired stake of angel investors including that of TVS Electronics. TVS Electronics had invested in Freshey's at an early stage and has built a strong product development and operational capabilities since inception," said a statement by WayCool.

Benani Foods manufactures and markets ready-to-cook products including idli and dosa batter, paneer, idiyappam and papad. It retails its product under the brand Freshey's and caters to 1,250 retail outlets and around 50 enterprise clients.

"Freshey's will continue to operate under the same brand name after the acquisition. WayCool's strong and robust supply chain mechanism and distribution network will enable entry of Freshey's across other markets of south India, as well as part of WayCool's product portfolio," it added.

Benani Foods Founder Venkatesh Deivanayagam said the company will "use the current equity to further cement our position in Chennai, and subsequently expand our presence into the rest of southern India. We will also use the investment to accelerate the launch of new products".

Earlier this month, WayCool had acquired the physical distribution business of Aalgro Foods, a Bengaluru-based B2B company in fruit retail packing and distribution space.