It is a significant milestone for the rapidly growing quick-service restaurant (QSR) chain. Wow! Momo has successfully raised $42 million in its latest Series D funding round. The round was spearheaded by Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia, showcasing strong investor confidence in the famous QSR brand.
The Series D funding included a primary infusion and secondary purchase, with existing investor Oaks Asset Management contributing Rs 60 crore to the funding round. Notably, this financial injection will facilitate partial exits for early-stage (Series A) investors, namely Indian Angel Network and Lighthouse Funds.
Wow! Momo commenced its Series D fundraising journey in September of the previous year, initially securing $16 million and following up with an additional $9 million in October. The cumulative investment from ValueQuest Capital, V’ocean Investment, and Oaksand India totalled $25 million across the first two tranches.
While the Series B round in 2019 was led by Tiger Global, the prominent investment firm did not participate in the subsequent Series C round or the current Series D round. Despite this, Wow! Momo has continued to attract substantial support from diverse investors.
They were founded in 2008 by Sagar Daryani and Binod Homagai. Wow! Momo Foods operates three distinct QSR brands—Wow Momo, Wow China, and Wow Chicken. The company proudly boasts a vast presence, with 630 outlets spanning 35 cities and providing direct employment to 6,000 individuals.
The fresh infusion of capital is earmarked to play a pivotal role in fueling the brand’s growth trajectory and facilitating expansive plans for geographical reach. Additionally, the funding will fortify Wow! Momo’s distribution network and support ongoing research and development initiatives, particularly for its fast-moving consumer goods (FMCG) arm.
Wow! Momo has set ambitious financial targets for the current fiscal year (FY24), aiming to achieve a topline revenue of Rs 650-700 crore. This represents a substantial uptick from the Rs 435 crore reported in FY23. The company’s financial performance has exhibited robust growth, with revenue from operations doubling from Rs 106 crore in FY21 to Rs 220 crore in FY22.
As Wow! Momo continues to innovate and expand. The recent Series D funding propels the brand to new heights and solidifies its position as a dynamic player in the competitive QSR landscape. The infusion of funds is expected to drive innovation, enhance operational capabilities, and elevate the customer experience across Wow! Momo’s diverse portfolio of offerings.
