Exclusive: Wow! Momo kicks off Series D round with $16 Mn

Quick service restaurant chain Wow! Momo has raised $16 million or Rs 125 crore in its series D round from V’oceanInvestment and Oaksand India. This would be the second funding round for the Kolkata-based company in the past year.

The board at Wow! Momo has passed a special resolution to issue 200 equity and 13,453 Series D preference shares at an issue price of Rs 99,235.24 per share to raise Rs 125 crore or $16 million, the company’s regulatory filings with the Registrar of Companies (RoC) show.

V’oceanInvestment led the round with Rs 67.8 crore while Oaksand India participated with Rs 57.2 crore. It’s worth noting that the company’s early backer Tiger Global didn’t participate in Wow! Momos funding from the last two rounds.

Launched in 2008, Wow! Momo Foods operates two QSR brands—Wow! Momo and Wow! China. At present, it has 300 outlets of Wow! Momo and more than 50 outlets of Wow! China. The company raised $15 million in its Series C round led by Tree Line Investment Management in September last year.

Following the fresh investment, V’oceanInvestment will hold 3.91% of the stake while Oaksand India will command 2.69% of the company’s share capital. The new round appears to be an ongoing one and Wow! Momo is likely to raise more money.

As per Fintrackr’s estimates, Wow! Momo has raised the fresh investment at a valuation of $270 million or Rs 2,130 crore, post allotment. The company’s valuation grew more than 60% in the past year as it was valued at $165-170 million in Series C round.

Wow! Momo is yet to file its financial statements for the last fiscal year (FY22) but its revenue from operations shrank 36% to Rs 106 in FY21. Meanwhile, the company’s losses ballooned 17X to Rs 59.3 crore in the fiscal marred with the pandemic.