16th January 2024, Kolkata: Wow! Momo, the Kolkata-based quick-service restaurant (QSR) chain, has successfully raised over INR 350 Crores (approximately $42 million) in funding from the Malaysian sovereign fund, Khazanah Nasional Berhad. The investment comes as a combination of primary infusion and secondary purchase from early-stage investors, including the Indian Angel Network (IAN) and Lighthouse Funds.
The funding round also saw a notable contribution of INR 60 Crores from the existing investor, OAKS Asset Management. This capital injection is expected to propel Wow! Momo’s growth, expand its QSR brand, strengthen distribution channels, and support research and development for its fast-moving consumer goods (FMCG) arm.
Wow! Momo, founded in August 2008 by Binod Kumar Homagai, Sagar Daryani, and Shah Miftaur Rahman, is not only known for its flagship brand but also operates two other brands, Wow! China and Wow! Chicken. The QSR chain has grown significantly, boasting more than 630 outlets spread across 35 cities.
Vision and Expansion Plans
Sagar Daryani, CEO, and Co-founder of Wow! Momo Foods expressed satisfaction at providing partial exits to the initial investors (IAN and Lighthouse Funds). Daryani highlighted the brand’s commitment to innovation and transformation within the food space, maintaining a balance between sustainability, growth, and supporting breakthroughs.
Dato’ Amirul Feisal Wan Zahir, Managing Director at Khazanah, stated, “We aim to encourage the growth of Wow! Momo through enhanced scalability, technological fortification, and focusing on building a strong back-end capability to support its growth.”
With ambitious expansion plans, Wow! Momo aims to open over 200 outlets in the coming fiscal year, pushing its total number of stores to over 1500 in the next three years. The company is not only focused on the QSR segment but is also expanding its presence in the FMCG space, with plans to have more than 1200 retail outlets across 50 cities in modern trade and quick commerce for its ready-to-eat momos.
Financial Performance and Previous Funding Rounds
In the financial year 2021-22, Wow! Momo reported an impressive over 2X increase in revenue, reaching INR 219.8 Crores compared to INR 106 Crores in the previous fiscal year. The recent funding from Khazanah follows a successful Series D round in 2022, where the company raised INR 125 Crores from OAKS Asset Management at a valuation of INR 2,125 Crores (approximately $257 million). Prior to this, Wow! Momo secured $15 million in its Series C round from Tree Line Management and has received backing from investors like Tiger Global and Lighthouse.
The strategic investment from Khazanah is expected to further propel Wow! Momo’s journey towards becoming a powerhouse in the food innovation space, cementing its position as a leader in the QSR and FMCG segments.