Quick service restaurant chain Wow! Momo has raised Rs 45 crore in debt funding from Anicut Capital, the Kolkata-headquartered firm introduced on Monday.
The debt financing shall be primarily utilised in direction of reimbursement of a Rs 35 crore mortgage the corporate had raised from Avendus Finance in 2018. Under the phrases of the brand new financing, Wow! Momo has the choice of elevating a further Rs 15 crore by April 2021.
The fast service chain at the moment has a complete of 357-plus shops throughout Delhi, Mumbai, Bangalore, Pune and Kolkata. Out of this greater than 290 are at the moment operational and over 60 of them are nonetheless shut and but 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 government & co-founding father of Wow! Momo, mentioned in a ready assertion.
The firm-issued assertion additionally mentioned that its enterprise had recovered to 65% of its topline in September, after touching a low of 10% in April 2020 as in comparison with February 2020, harm by the continued Covid-19 pandemic and the next nationwide lockdown. Additionally, it’s supply enterprise had gotten again to 180% if in comparison with pre-Covid instances. It additionally expects enterprise to the touch 75 to 80 % of pre-Covid numbers for October, 2020, provided 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, mentioned.
Wow! Momo, which owns and operates two manufacturers Wow! Momo and Wow! China had raised Rs 130 crore in fairness financing from New York-headquartered funding agency Tiger Global Management, in September final yr, and which had valued it at about Rs 860 crore on the time, and was the primary client product wager positioned by the storied funding agency in India.
Wow! Momo, based in 2008 by Daryani, Binod Kumar Homagai and Shah Miftaur Rahman, additionally counts the likes of Lighthouse Funds and Indian Angel Network amongst its checklist of buyers. The latter, which had invested Rs 14 crore throughout rounds, and had earned Rs 50 crore, or a 70% return on its funding, on the time of Tiger Global’s capital infusion by a secondary transaction that noticed it partially exit its funding.
Anicut capital, based and led by monetary providers veterans IAS Balamurugan and Ashvin Chadha, manages each debt funds and an angel fund, based on VCCircle.