Wow! Momo Foods raises Rs 45 cr debt funding from Anicut Capita

Momo Foods on Tuesday announced raising Rs 45 crore debt funding from Anicut capital for repaying an old debt to Avendus Finance. This fund will be used for repayment of an old loan of Rs 35 crore to Avendus Finance, which was raised in 2018, the company said in a statement. Wow!

Quick service restaurant brand Wow! Momo Foods on Tuesday announced raising Rs 45 crore debt funding from Anicut capital for repaying an old debt to Avendus Finance. This fund will be used for repayment of an old loan of Rs 35 crore to Avendus Finance, which was raised in 2018, the company said in a statement.

Wow! Momo Foods raised Rs 45 crore with an option to raise another Rs 15 crore by April 2021. Business is back to 65 per cent of the pre-COVID levels and is expected to touch 75-80 per cent of pre-COVID numbers for October and is aiming to touch 4 lakhs online orders keeping the festive season in mind.

Wow! Momo recorded a whopping 3 lakhs online orders last month. The company currently has over 357 stores across Delhi, Mumbai, Bangalore, Pune and Kolkata and of these 290 are currently operational and over 60 of them are still shut and yet to re-open.

“These crucial times may have brought our business down initially but we always found new ways and undertook initiatives which helped us stay afloat. “We have been more robust than ever with a change in business models, newer collaboration with Café Coffee Day to open Shop-In- Shop formats. Setting up new business verticals and 31 new point of sale openings in the past six months,” Wow! Momo Foods CEO and Co-Founder Sagar Daryani said.

The company has also taken a conscious call to shut down over 30 non performing outlets nationally and the complete focus is to get back to profitability at the earliest to the pre-COVID times, he added. Wow! Momo had been backed by The Indian Angel Network and LightHouse Funds in the past. Last year, the company was valued at over Rs 860 crore by US based Tiger Global with an infusion of Rs 120 crore directly into the business and an additional Rs 60 crore as a secondary partial exit to members of The Indian Angel Network. PTI SM SHW SHW