Quick-service restaurants (QSR) chain Wow! Momo has raised over INR 125 Cr from OAKS Asset Management at a valuation of INR 2,125 Cr in its Series D round of funding.
As per the QSR chain, it is set to raise another INR 100 Cr in the next quarter from another venture capital (VC) fund in the second tranche, as part of the same funding round.
Wow! Momo, which operates three brands – Wow! Momo, Wow! China and Wow! Chicken – will use the fresh funds to build strong back-end capabilities for entering the Tier-1 and Tier-2 markets in India.
With an expansion plan to open over 250 new outlets this fiscal year, supported by a network of over 50 Wow! Chicken stores and some strong brands for acquisition, the Wow! Momo story is expected to be power-packed in the next 24 months, said the QSR brand in a statement.
Wow! Momo also said that its ready-to-eat momos have gone through a rechristening in terms of production technology and packaging and would soon be available across all leading grocery chains and ecommerce platforms in the coming quarter.
“We expect Wow! Momo to not only gain domestic market share in India but also to be the first global sized QSR company from India,” said Vishal Ootam, founder and CEO of OAKS Asset Management.
Founded in August 2008 by Binod Kumar Homagai, Sagar Daryani, and Shah Miftaur Rahman, Wow! Momo claims to currently have a monthly revenue run-rate of over INR 40 Cr and it plans to double its growth by mid-next year. The brand is looking to end the current financial year with a topline of over INR 450 Cr as against INR 220 Cr recorded in the last fiscal year, it said.
Wow! Momo Foods competes with the likes of other Indian QSR chains including Faasos and Cafe Coffee Day, as well as international names such as KFC.
Its Series D funding round comes almost a year after the company announced raising over $15 Mn in its Series C funding round in September last year. The round was led by Tree Line Investment Management.
Prior to that, in October 2020, the QSR brand had raised INR 40 Cr in debt from Grand Anicut Fund 2.
As per a Statista report, the QSR market size in India is estimated to grow to over INR 500 Bn by 2025, which was pegged at about INR 188 Bn in FY 2020.
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