Read the passage given below to answer the questions :

A successful food entrepreneur today, Debashish Majumdar belonged to a lower middle class back ground, studied to become a banker. He got his first job as an office assistant. He rose from being an office assistant to the chief accountant and later on pursued a career as a banker with a good salary. After some time he quit his job and the first business he started in 2017, which was an ice cream shop. That did not take off and he made a loss of almost 10 lakh rupees. Idea to start a momo joint came to him when he visited an outlet in Guwahati and felt he could have served better momos. With a loan of about 23.5 lakh with an interest rate of 10 per cent, he launched 'Momomia' is 2018. He ensured that the location was prime to ensure good footfall. That also meant higher rent rate. He started operations with a team of three others. Eventually when he approached investors, he was told his operations were too small to be considered. Monthly sales in the first years were touching about Rs. 1.5 lakh, political turmoil in the state started. The pressure of returning the loan amount was also growing. Gradually situation become better, soon business picked up and in Feb. 2021, first franchise store was opened in Haridwar. Franchise model worked so well for him that he has opened up 55 such franchise outlets in Assam, Arunachal Pradesh, Bihar, Gujrat, Uttar Pradesh and Madhya Pradesh.

'Momomia' provides employment to over 200 people across 50+ outlets. Mean while Momomia's customers can choose from 100 difference kinds of momos.

Debashish approached investors when he had already entered the market and faced competition. He sought financing at _____ stage.

Second round financing

Stages of business development funding :

A:  Early-stage financing

1. Seed capital : Relatively small amount to prove concepts and finance feasibility studies.
2. Start-up: Product development and initial marketing, but with no commercial sales yet; funding to actually get company operations started.

B: Expansion or development financing

1. Second stage: Working capital for initial growth phase, but no clear profitability or cash flow yet.
2. Third stage: Major expansion for company with rapid sales growth, at breakeven or positive profit levels but still private company.
3. Fourth stage: Bridge financing to prepare company for public offering.

C. Acquisitions and leveraged buyout financing

1. Traditional acquisitions: Assuming ownership and control of another company.
2. Leveraged buyouts (LBOs): Management of a company acquiring control by buying out the present owners.
3. Going private: Some of the owners/managers of a company buying all the outstanding stock, making the company privately held again.