Exclusive: Wow! Momo bags $9 Mn from ValueQuest

Quick service restaurant chain Wow! Momo has raised Rs 75 crore or $9 million as a part of Series D round from ValueQuest Capital. This would be the first funding round for the Kolkata-based company in 2023.

The board at Wow! Momo has passed a special resolution to issue 7,990 Series D1 CCPS at an issue price of Rs 93867 per share to raise Rs 75 crore or $9.1 million, the company’s regulatory filings with the Registrar of Companies (RoC) show.

As per TheKredible estimates, the company has been valued at around $340 million post-allotment. 

Following the fresh proceeds, ValueQuest Capital holds 3.21% while Tiger Global remained the largest external shareholder with a 14.08% stake followed by Lighthouse and Treeline Investment. Its co-founders Sagar Daryani and Binod Homagai cumulatively command more than 30% of the company. Check TheKredible to see the complete shareholding pattern.

Wow! Momo kicked off its Series D round of $16 million in September last year, where its valuation grew over 60% in contrast to its Series C round of financing. Entrackr exclusively reported the development.

 The company also said that it would raise around Rs 100 crore in the second tranche of the ongoing round. As of now, it has scooped up over $25 million in Series D financing.

Launched in 2008, Wow! Momo Foods operates three QSR brands—Wow Momo, Wow China and Wow Chicken. The firm claims to have 620 outlets across 32 cities and directly employs 6,000 people.

The firm also has a new format now called Wow Eats which has all the three brands together. Wow Eats started with a store in Chennai and Hyderabad and has plans to launch the flagship store in Kolkata. Going forward, it has plans to add a fourth vertical, Wow! Kulfi.

Wow! Momo is yet to file its financial statements for the last fiscal year (FY23) Its revenue from operations grew two-fold to Rs 220 in FY22 from Rs 106 crore in FY22. However, the company’s losses shrank by 10% to Rs 53.46 crore in FY22.  According to the company, it aims to reach a top-line revenue of Rs 650-700 crore this year (FY24), up from Rs 435 crore last year (FY23).