Wow! Momo Foods gains INR 40 Cr Debt from Anicut Capital

Wow! Momo Foods has raised INR 40 Cr in debt from Grand Anicut Fund - 2. According to filings with the Ministry of Corporate Affairs (MCA), the company had received the consent of its board members to allot 600 Non-Convertible Debentures (NCDs) at a face value of INR 10 lakhs per share, aggregating to a total amount of INR 60 Cr, and 1,277 CCPS at a face value of INR 590 per share and a premium of INR 46,398, aggregating to a total amount of around INR 6 Cr. It has so far received INR 40 Cr in debt from the Grand Anicut Fund – 2.

The Grand Anicut Fund – 2 is the second investment fund of Chennai-based venture capital firm Anicut Capital.

Wow! Momo Foods last raised funding for a Series B round worth $23 Mn (INR 168 Cr) from US-based investment firm Tiger Global Management. After that round, Wow! Momo Foods had an estimated value of $120 Mn. At the time, the company had claimed that the investment would help accelerate its global ambitions.

The company claimed to be clocking a monthly revenue run rate of over INR 15 Cr. The company is said to be EBITDA positive since inception and grown at a CAGR of over 50% from 2016-19.

Early investors in the company include Fabindia MD, William Bissel, Indian Angel Network (IAN), among others. With Tiger Global’s investment, IAN took a $3 Mn partial secondary exit from Wow! Momo Foods, earning approximately seven times return in four years and an estimated internal rate of return (IRR) of over 70%.

Amid the lockdown induced by the Covid-19 pandemic this year, Wow! Momo Foods saw its sales drop drastically, prompting it to start delivering FMCG items and groceries to customers’ homes. The company tied up with ITC, Nestle, P&G and Emami for the products and online delivery platform Swiggy for the distribution, and launched the service in several cities such as Kolkata, Delhi, Bengaluru, Chennai, Mumbai and Bhubaneswar, among others.

In the QSR segment, Wow! Momo Foods competes with other startups such as Faasos and Cafe Coffee Day, among others.