Wow! Momo Foods— engaged in the business of Wow! Momo, Wow! China, and Wow! Chicken—has secured $49 million (Rs 410 crore) in funding to consolidate its lead the distribution footprints and R&D strengths of the FMCG arm, the firm revealed.
Wow! Momo Foods, which began operations in in August 2008, has established a chain of over 630 outlets in over 35 cities. It now plans to add another 200 outlets in the coming fiscal year and accelerate its consistent growth of its FMCG business. Wow! Momo, together with Wow! China and Wow! Chicken, aims to launch its operations in more than 100 cities and accomplish the target of 1,500 stores in the next three years.
With over 1,200 retail outlets, across more than 50 cities, in modern trade and quick commerce, with its ready-to-eat momos it has set an ambitious growth plan to launch various FMCG touchpoints said the company. New innovative product extension are also in the pipeline that will be rolled out in the coming fiscal year, it added.
“There is no greater joy for a founder than giving its initial investors (Indian Angel Network and Lighthouse Funds) great partial exits. For us, the Bharat Story has just begun with a huge headway of growth,” said Sagar Daryani, CEO and Co-founder of Wow! Momo Foods.
“With Khazanah’s investment into the business and their long-term approach, we will strive to become the powerhouse of innovation and transformation in the food space while keeping a strong balance between sustainability, growth and backing breakthroughs,” Daryani added.
Wow! Momo Foods growth trajectory is well laid out – Khazanah MD Zahir
“We are excited to be on the journey with Wow! Momo in their mission to build the largest QSR brand in India. 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,” said Dato’ Amirul Feisal Wan Zahir, Managing Director, Khazanah.
India’s quick-service restaurant industry is predicted to achieve 20-25% growth in the current fiscal year backed by a upsurge in demand and rapid expansion of stores.
The new round of funding was raised from Malaysia’s sovereign wealth fund Khazanah Nasional Berhad. The investment includes a primary infusion and secondary purchase from early-stage investors Indian Angel Network and Lighthouse Funds. Existing investor OAKS Asset Management has invested an additional Rs 60 crore in Wow! MomoFoods, the company said in a statement.
Banking and wealth management firm Investec acted as the financial advisor to Wow! Momo in the transaction.
The Tiger Global-backed company has secured upwards of $80 million in funding uptill date, according to data from market intelligence firm Tracxn. In September 2021, it secured $15 million in Series C funding led by Tree Line Investment Management. Khazanah’s other investments in India include Xpressbees, Flipkart, and TransUnion CIBIL.
