Delhi-based food chain Wow! Momo Foods, renowned for its brands Wow! Momo, Wow! China, and Wow! Chicken, has successfully raised $49 million (Rs 410 crore) in funding from Malaysia’s sovereign wealth fund, Khazanah Nasional Berhad. This funding round encompasses both a primary infusion and a secondary purchase from early-stage investors Indian Angel Network and Lighthouse Funds. Furthermore, existing investor OAKS Asset Management contributed an additional Rs 60 crore to Wow! Momo Foods.
The newly acquired funds are earmarked to fortify the distribution network and advance research and development capabilities, particularly within the fast-moving consumer goods (FMCG) arm of the company. Investec, a prominent banking and wealth management firm, served as the financial advisor for Wow! Momo in this transaction.
Founded in August 2008, Wow! Momo Foods boasts a network of over 630 outlets across more than 35 cities. The company plans an ambitious expansion, with projections of adding 200 outlets in the coming fiscal year. The focus extends beyond physical outlets, as Wow! Momo aims to bolster its FMCG business, with plans to enter more than 100 cities and establish a footprint of over 1,500 stores within the next three years.
Wow! Momo’s diverse portfolio, including Wow! China and Wow! Chicken, is poised for substantial growth across various FMCG touchpoints. The brand anticipates a significant presence in over 50 cities through 1,200 retail outlets in modern trade and quick commerce, featuring ready-to-eat momos. The company also teases upcoming product launches in the fiscal year.
Having garnered support from investors like Tiger Global, Wow! Momo Foods has raised over $80 million to date. In September 2021, the company secured $15 million in Series C funding led by Tree Line Investment Management. Khazanah’s previous investments in India include notable names such as Xpressbees, Flipkart, and TransUnion CIBIL.
Sagar Daryani, CEO and Co-founder of Wow! Momo Foods, expressed his joy in giving partial exits to the initial investors, emphasizing the brand’s growth trajectory. He highlighted the significance of Khazanah’s investment and their long-term approach, aiming to position Wow! Momo Foods as a powerhouse of innovation and transformation in the food space while maintaining a strong balance between sustainability and breakthroughs.
Dato’ Amirul Feisal Wan Zahir, Managing Director at Khazanah, conveyed excitement about the partnership, expressing a commitment to encourage Wow! Momo’s growth through enhanced scalability, technological fortification, and a robust back-end capability.
The funding injection comes at a time when India’s quick-service restaurant industry anticipates substantial growth of 20-25% in the current financial year, driven by increased demand and expanding store penetration.
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