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Wow! Momo Food Bags 40 Crore INR in Debt Funding

Wow! Momo Food
Sagar Daryani, Co-founder of Wow! Momo Food

The Kolkata based Wow! Momo Food, a quick-service restaurant chain (1), specializes in momos and dumplings. It operates around 293 outlets across India.

As per the reports, the company approved its board members to allot 600 NCDs, at face value of 10 lakh INR per share. It has aggregated 60 Crore INR amount and 1,277 CCPS at 590 INR per share, with a premium of 46,398 INR. Consequently, the total aggregate amount is around 6 Crore INR. The Grand Anicut Fund – 2 is the second investment arm of Anicut Capital, a Chennai-based venture capital firm.

In the last funding round, the Wow! Momo Foods had secured 168 crore INR or 23 million USD. Tiger Global Management, a US-based investment firm, led its Series B funding round. The company reaches the estimated value of 120 million USD after that round.

Wow! Momo Food, India’s First Major Chain of Branded Momos

Binod Kumar Homagai and Shah Miftaur Rahman founded the Wow! Momo Food in 2008. It specializes in momos and dumplings, a popular Tibetan food item in China, Nepal, and India.

In September 2019, the company was operating over 282 outlets of Wow! Momo and 11 outlets of Wow! China, a sister brand for Chinese fast-food.

The company claims that it is observing 15 crore INR monthly revenue. Since its inception, it claims that it has been EBITDA positive with more than 50% CAGR from 2016 to 2019.

The early investors of the Wow! Momo Foods includes William Bissell, the MD of FabIndia, Indian Angel Networks, IAN, and many others. When the company received fundings from the Tiger Global, IAN took a partial exit of 3 million USD from Wow! Momo Foods.

At the time of departure, the company earned roughly seven times more return than its initial investment in four years. Notably, the estimated IRR or Internal Rate of Return was more than 70 percent.