The debt financing can be primarily utilised in direction of reimbursement of a Rs 35 crore mortgage the corporate had raised from Avendus Finance in 2018 Underneath 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 present has a complete of 357-plus shops throughout Delhi, Mumbai, Bangalore, Pune and Kolkata. Out of this greater than 290 are at present operational and over 60 of them are nonetheless shut and but to re-open.
“Establishing new enterprise verticals and a complete of 31 new level of sale openings previously 6 months. Now we have additionally taken a acutely aware name to close down over 30 non performing retailers nationally and the entire focus is to get again to profitability on the earliest as was the situation in Pre-Covid occasions,” Sagar Daryani, chief govt & co-founder of Wow! Momo, mentioned in a ready assertion.
The corporate-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, damage by the continued Covid-19 pandemic and the following nationwide lockdown. Moreover, it’s supply enterprise had gotten again to 180% if in comparison with pre-Covid occasions. It additionally expects enterprise to the touch 75 to 80 % of pre-Covid numbers for October, 2020, on condition that the Indian festive season is about to get underway.
“Ours has been a narrative of agility and flexibility. These essential occasions might have introduced our enterprise down initially however we at all times discovered new methods and undertook initiatives which helped us keep afloat. Now we have been extra sturdy than ever with a change in enterprise fashions, newer collaboration with Café Espresso Day to open Store-In- Store codecs,” 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 International Administration, in September final 12 months, and which had valued it at about Rs 860 crore on the time, and was the primary shopper product guess 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 Community amongst its listing 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 International’s capital infusion by way of 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, in accordance with VCCircle.