Wow! Momo raises $42 Mn led by Khazanah

Quick service restaurant chain Wow! Momo has scooped up Rs 350 crore (approximately $42 million) in its Series D round led by Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia. Existing investor Oaks Asset Management also invested Rs 60 crore in this round.

The primary infusion and secondary purchase will also see partial exits of early-stage (Series A) investors, Indian Angel Network and Lighthouse Funds.

The funding will play a crucial role in fueling the growth and expansion of the QSR brand, Wow!Momo said in a press release. The capital will also help strengthen the distribution foothold and support research and development for the FMCG arm.

Wow! Momo kicked off the Series D round in September last year with $16 million and picked up another $9 million in October. ValueQuest Capital, V’oceanInvestment and Oaksand India have cumulatively pumped in$25 million across the first two tranches. Entrackr had exclusively reported the development then.

As per startup data intelligence platform TheKredible estimates, the startup raised the second tranche at a post money valuation of Rs $340 million.

Tiger Global, which led the company’s Series B round in 2019, did not participate in Series C and the current (Series D) round.

Launched in 2008 by Sagar Daryani & Binod Homagai, Wow! Momo Foods operates three QSR brands—Wow Momo, Wow China and Wow Chicken. The firm claims to have 630 outlets across 35 cities and directly employs 6,000 people.

Wow! Momo aims to reach a topline of Rs 650-700 crore this fiscal year (FY24), up from Rs 435 crore in FY23. While the firm 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 FY21.