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Delhi-based food chain Wow! Momo Foods—the operator of Wow! Momo, Wow! China, and Wow! Chicken—has raised $49 million (Rs 410 crore) in funding 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.

The funding will enable the brand to strengthen the distribution foothold and research and development capabilities of the FMCG arm, the firm noted.

Banking and wealth management firm Investec acted as the financial advisor to Wow! Momo in the transaction.

Founded in August 2008, Wow! Momo Foods has more than 630 outlets in over 35 cities. It now plans to expand by another 200 outlets in the coming fiscal year and drive steadfast growth of its FMCG business.

Wow! Momo, together with Wow! China and Wow! Chicken, aims to enter more than 100 cities and look at a footprint of over 1,500 stores in the next three years. The brand is also expanding across various FMCG touchpoints with over 1,200 retail outlets, across more than 50 cities, in modern trade and quick commerce, with its ready-to-eat momos, said the company. New path-breaking product launches are also lined up in the coming fiscal year, it added.

The Tiger Global-backed company has raised upwards of $80 million in funding till 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.

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Sagar Daryani, Co-founder and CEO, Wow! Momo Foods

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“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,” he added.

“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 likely to witness 20-25% growth in the current financial year supported by a demand uptick and increasing penetration driven by a rapid expansion of stores.