Wow! Momo, a Kolkata-based chain of fast-food restaurants that specializes in momos has announced that it has raised Rs 45 crore in debt funding from Anicut Capital.
The company will primarily use the debt funding to repay a loan of Rs 35 crore it had raised from Avendus Finance in 2018.
Founded in 2008 by Binod Kumar Homagai, Sagar Daryani and Shah Miftaur Rahman, the company currently has a total of 357-plus stores across Delhi, Mumbai, Bangalore, Pune and Kolkata. Out of this more than 290 are currently operational and over 60 of them are still shut and yet to re-open.
“Setting up new business verticals and a total of 31 new point of sale openings in the past 6 months. We have 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 as was the scenario in Pre-Covid times,” Sagar Daryani, chief executive & co-founder of Wow! Momo, said in a prepared statement.
According to the press statement, the company’s business had recovered to 65% of its topline in September. Its delivery business had gotten back to 180% in comparison to the pre-Covid times. It also expects business to touch 75 to 80 % of pre-Covid numbers for October, 2020, given that the Indian festive season is about to get underway.
“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,” Daryani, said.
Wow! Momo is backed by Lighthouse Funds and Indian Angel Network among its list of investors. So far, Indian Angel Network had invested Rs 14 crore in the company.
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