Restaurant chain Wow Momo is set to raise Rs 185 crore, or about $20 million, through a debt round led by InCred Credit Opportunities, marking its second debt financing this year.
The Kolkata-born quick-service restaurant company has approved the issue of 18,500 non-convertible debentures to raise the capital. InCred Credit Opportunities is expected to contribute the largest share with Rs 125 crore. RevX Capital Fund will invest Rs 40 crore, while Anicut Capital will put in the remaining Rs 20 crore.
The fresh debt will be used to refinance existing borrowings, meet general corporate requirements, and support the company’s growth capital needs.
The move comes just months after Wow! Momo raised Rs 110 crore in debt from Anicut Capital in April. With this latest planned raise, the company appears to be leaning on structured debt to fund expansion while managing earlier liabilities.
Founded in 2008 by Sagar Daryani and Binod Homagai, Wow Momo has grown from a momo-focused food brand into a multi-brand restaurant business. It currently operates more than 850 outlets across India. Its portfolio includes Wow! Momo, Wow! China, Wow! Chicken, and other food brands.
The company was valued at around Rs 2,838 crore, or $316 million, on a post-money basis in its previous funding round. It had raised over $140 million before this proposed debt infusion, including a $42 million Series D round led by Khazanah Nasional in January 2024.
Wow! Momo has not yet filed its financial statements for FY25 and FY26. In FY24, the company reported Rs 470 crore in revenue, while losses stayed largely flat at around Rs 114 crore. Its revenue reportedly crossed Rs 640 crore in FY25 and Rs 850 crore in FY26. The company has also set a revenue target of Rs 1,200 crore by 2027.
The newest debt structure highlights the capital intensiveness involved in building a food-service chain in India, where growth through stores, branding, logistics, and cash flow might necessitate constant reinvestment, even for rapidly expanding consumer brands.
For Wow! Momo, the immediate task will be to convert its expanding outlet base and rising revenue into stronger operating leverage. The company’s growth story remains visible, but the next phase will likely be watched for how efficiently it balances expansion with profitability.
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