Wow! Momo Secures Rs 185 Crore in Debt Funding

Quick-service restaurant chain Wow! Momo is preparing to secure Rs 185 crore ($20 million) through debt financing from InCred Credit Opportunities, RevX Capital Fund, and Anicut Capital, marking its second debt initiative for the year. Earlier in April, Wow! Momo successfully obtained a Rs 110 crore loan from Anicut Capital, a transaction that was exclusively reported by Startup Superb.

The company’s board has given the green light for the issuance of 18,500 non-convertible debentures (NCDs) in multiple filings to accumulate the mentioned amount, as per its reports to the Registrar of Companies (RoC). According to these filings, InCred Credit Opportunities will spearhead this debt round with an investment of Rs 125 crore, followed by RevX Capital Fund contributing Rs 40 crore, while Anicut Capital will provide the remaining Rs 20 crore, leading to a total debt infusion of Rs 185 crore.

The funds from the upcoming debt round will be directed towards refinancing existing loans, fulfilling general corporate requirements, and financing the company’s growth capital needs.

Company Overview

Founded in 2008 by Sagar Daryani and Binod Homagai, Wow! Momo operates more than 850 outlets across over 90 cities. Its brand portfolio features offerings such as Wow! Momo, Wow! China, Wow! Chicken, and Wow! Kulfi.

Funding and Valuation

As per its latest funding round, the company was valued at approximately Rs 2,838 crore ($316 million) on a post-money basis. Prior to the current round, Wow! Momo has accumulated more than $140 million in funding, including a $42 million Series D round led by Khazanah Nasional in January 2024.

Financial Performance

The company has yet to submit its financial statements for FY25 and FY26. However, in FY24, Wow! Momo reported a revenue of Rs 470 crore, while its losses remained roughly unchanged at around Rs 114 crore. Based on company projections, its revenue surpassed Rs 640 crore in FY25 and is expected to reach Rs 850 crore in FY26. Furthermore, Wow! Momo has established a goal of achieving Rs 1,200 crore in revenue by 2027.