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    Wow! Momo raises Rs 45 crore debt funding from Anicut Capital

    entrepreneurship | IST

    Wow! Momo raises Rs 45 crore debt funding from Anicut Capital

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    The venture claims it sees a bounce-back from the slowdown when several restaurant chains in India have filed for bankruptcy due to the on-going pandemic.

    Wow! Momo Foods which owns and operates two quick-service restaurant brands Wow! Momo and Wow! China has raised Rs 45 crore in debt funding from Anicut capital with an option to raise another Rs 15 crore by April 2021.
    The debt goes towards old loan repayment of Rs 35 crore to Avendus Finance, which was raised in 2018 and a fresh influx of growth capital.
    The venture has claimed that it sees a bounce-back from the slowdown when several restaurant chains in India have filed for bankruptcy due to the on-going COVID-19 pandemic.
    From launching a new business vertical during the lockdown to new outlets, Wow! Momo currently has a total of 357+ stores across Delhi, Mumbai, Bengaluru, Pune and Kolkata. Out of this 290+ are operational, and over 60 of them are yet to re-open.
    From plummeting to 10 percent of monthly business in April 2020 as compared to February 2020 to a top line of 65 percent in September, the venture claims it is growing stronger with delivery business getting back to 180 percent, compared to pre-COVID- 19 levels.
    Wow! Momo also recorded 3 lakh online orders last month. The company expects to get back to 75-80 percent of pre-COVID numbers in October to touch 4 lakh online orders.
    Sagar Daryani, Co-founder and CEO, Wow! Momo Foods, commented, “Ours has been a story of agility and adaptability. 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 & a total of 31 new points of sale opening in the past six months. We have also taken a conscious call to shut down over 30 non-performing Outlets nationally & the compete focus is to get back to profitability at the earliest as was the scenario in Pre-Covid times.”
    Backed by The Indian Angel Network & Light House Funds in the past, last year Wow! Momo was valued at over Rs 860 crore by US-based Tiger Global.
    Tiger Global infused 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. They made a 8x return against their initial investment.
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