Wow! Momo, a Kolkata-headquartered chain of quick service restaurants (QSR), said on Monday it has raised Rs 7.9 crore ($1.18 million) in debt from private-sector lender Bandhan Bank.
The funds include a cash credit facility of Rs 1 crore and will be used to set up back-end infrastructure in Kolkata and open new stores, Wow Momo Foods Pvt. Ltd said in a statement.
The food chain aims to open 40 outlets in the financial year through March 2017 in cities where it is already present. It operates in Kolkata, Bangalore, Pune, Delhi, Chennai and Kochi.
The company, which was founded in 2008, has a revenue run rate of Rs 4 crore a month. Kolkata, Bangalore and Chennai are its profitable markets while it hopes to be profitable in Delhi NCR by the end of this year, it said.
"Our cash flows continue to be quite strong, and we are confident that we'll comfortably manage to service the amount raised as we have been doing in the past,” said Sagar Daryani, co-founder of Wow! Momo.
The company, which was founded by Daryani and Binod Homagai, had raised an estimated Rs 10 crore from the Indian Angel Network last year.
Other QSR chains which have raised funding in the past year include Maroosh, a Mumbai-based QSR chain that mainly offers Lebanese cuisine, and SLS Cuisines India Pvt Ltd, which runs QSR chain Roll Mafia.
Bandhan Bank, which is backed by Singapore's sovereign wealth fund GIC and the World Bank arm International Finance Corporation, became the first private bank in India to start operations in 11 years last year.
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