Wow! Momo Foods, which owns and operates two quick-service restaurant brands Wow! Momo and Wow! China, in India announced on Tuesday that it has raised about $6.1 million (Rs45 crore) in debt funding from venture capital firm Anicut Capital.
In a statement, the company said it will use the proceeds largely to repay the Rs35 crore debt it raised from Avendus Finance in 2018.
“We have been more robust than ever with a change in business model — a collaboration with Café Coffee Day to open shop-in-shop formats, and the setting up of new business verticals, and a total of 31 new point-of-sale openings in the past six months,” said Sagar Daryani, CEO & co-founder, Wow! Momo Foods.
“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,” he added.
Wow! Momo currently has over 357 outlets across Delhi, Mumbai, Bangalore, Pune, and Kolkata. Of this, more than 290 are currently operational and over 60 of them are still shut and yet to re-open, the statement added. The company claims to have recorded 300,000 online orders last month. It expects to get back to 75-80 per cent of pre-COVID numbers in October with an aim to touch 400,000 online orders.
Investors in Wow! Momo include The Indian Angel Network & Light House Funds, and the New York investment firm Tiger Global that invested Rs120 crore in the company early last year. In 2016, the quick-service restaurant chain raised Rs7.9 crore in debt from Bandhan Bank.