Wow! Momo Foods secured INR 350 crore in funding from Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund. This represents the company’s most significant capital raise, coinciding with robust double-digit growth in the overall food services industry. The appeal of momos as a snack in India, coupled with competitive pricing, adds to the success of this fundraising effort.
The investment will involve both primary infusion and secondary purchase from early-stage investors, including the Indian Angel Network and Lighthouse Funds. Additionally, in this funding round, Oaks Asset Management, an existing investor, has injected an additional INR 60 crore.
Sagar Daryani, Co-Founder and CEO of Wow! Momo Foods, confirmed the development.
The round will provide an exit opportunity for angel investors associated with The Indian Angel Network (IAN) and enable series A investor Lighthouse Funds to partially divest, as stated by him. “We will strive to transform the food space,” he said.
Established in August 2008, Wow! Momo manages a network of 630 stores spread across over 35 cities. Approximately one-third of these stores are small-format or kiosk stores, situated in malls, tech parks, and hypermarkets. Wow! Momo has successfully created a distinctive presence for itself in a market with limited competition on a national scale, capitalizing on the widespread popularity of the cuisine in India. The company operates under three sub-brands: Wow! Momo, Wow! China, and Wow! Chicken.
The core fund will drive the brand’s growth and expansion, enhance distribution channels, and support research and development for its FMCG arm. The FMCG arm specializes in selling packaged frozen ready-to-eat momos through retail stores and e-commerce platforms.
Wow! Momo Foods Growth Strategy: 1,500 Stores in 100 New Cities
Daryani mentioned that the company is set to expand its reach to another 100 cities, with a target of establishing over 1,500 stores in the next three years.
Executives highlighted that the recent fundraising serves as evidence of renewed investor enthusiasm in the food services sector, despite increased competition and the entry of global brands into the Indian market.
According to Icra, India’s fast-food and quick-service restaurant companies are projected to add approximately 2,300 new stores between FY23 and FY25. This expansion plan is accompanied by an anticipated capital expenditure of around INR 5,800 crore, taking advantage of the growing affordability and heightened consumer demand for fast foods.
With a post-money valuation of over INR 2,400 crore, the company has garnered a total of INR 500 crore in funding to date, not including the ongoing round. The founders, promoters, and employees collectively retain a 45% ownership stake in the venture.
Continue Exploring: Wow! Momo Raises $9M in Series D, Eyes INR 100 Crore Round!
