Wow! Momo, the popular quick-service restaurant chain, has successfully raised $9 million (approximately Rs 75 crore) as part of its Series D funding round from ValueQuest Capital, marking its first funding round of 2023. The fresh investment is set further to bolster the growth and expansion of the Kolkata-based company.
In a move outlined in the company’s regulatory filings with the Registrar of Companies (RoC), Wow! Momo’s board passed a special resolution authorizing the issuance of 7,990 Series D1 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 93,867 per share, resulting in the procurement of Rs 75 crore or $9.1 million.
This investment round has been estimated. Wow! Momo’s valuation is approximately $340 million post-allotment, according to TheKredible estimates.
Following this capital infusion, ValueQuest Capital acquired a 3.21% stake in the company, while Tiger Global is the most significant external shareholder, holding a 14.08% stake. Lighthouse and Treeline Investment are also substantial stakeholders and the co-founders of Wow! Momo, Sagar Daryani and Binod Homagai jointly retain more than 30% of the company.
Wow! Momo initiated its Series D funding round in September of the previous year, securing $16 million, with a notable increase in its valuation of over 60% compared to its Series C financing round. Entrackr exclusively reported this development.
The company also intends to raise an additional Rs 100 crore in the second tranche of the ongoing Series D round. Thus far, Wow! Momo has successfully amassed over $25 million in funding as part of this round, further fueling its expansion plans.
It was established in 2008; wow! Momo Foods operates three quick-service restaurant (QSR) brands – Wow Momo, Wow China, and Wow Chicken, boasting a network of 620 outlets spanning 32 cities. The company directly employs over 6,000 individuals.
A recent addition to the Wow! Momo’s portfolio is the innovative Wow Eats format, which combines all three brands under one roof. Initially introduced in Chennai and Hyderabad, Wow Eats has plans to inaugurate its flagship store in Kolkata. Looking ahead, Wow! Momo is exploring the introduction of a fourth vertical. Wow! Kulfi.
Wow! Momo, the company has shown robust growth, with its revenue from operations doubling to Rs 220 crore in FY22, up from Rs 106 crore in FY21. Moreover, the company has reduced its losses by 10%, totalling Rs 53.46 crore in FY22. Wow! Momo’s ambitious target for the current fiscal year (FY24) is to achieve a top-line revenue of Rs 650-700 crore, significantly up from Rs 435 crore in the previous year (FY23). This strong growth trajectory underscores the company’s dedication to expanding its presence in the Indian quick-service restaurant industry.
