The Kolkata-based quick-service restaurant chain, Wow! Momo, has secured INR 75 crore (approximately $9 million) in funding as part of its Series D round, with ValueQuest Capital leading the investment. This marks Wow! Momo’s first funding round for the year 2023.
According to the company’s regulatory filings with the Registrar of Companies (RoC), Wow! Momo’s board has approved a special resolution to issue 7,990 Series D1 CCPS (Compulsorily Convertible Preference Shares) at a share price of INR 93,867 each, with the aim of raising INR 75 crore or $9.1 million.
Based on TheKredible’s assessments, the company’s valuation post-allotment stands at approximately $340 million.
After the recent infusion of funds, ValueQuest Capital now possesses a 3.21% stake, while Tiger Global maintains its position as the largest external shareholder with a 14.08% stake, closely trailed by Lighthouse and Treeline Investment. Collectively, Wow! Momo’s co-founders, Sagar Daryani and Binod Homagai, exercise control over more than 30% of the company.
Wow! Momo launched its Series D round of $16 million in September last year, experiencing a substantial 60% increase in valuation compared to its prior Series C round of financing.
The company has further announced its intention to secure approximately INR 100 crore in the second installment of the current funding round. To date, the company has successfully raised over $25 million in Series D financing.
Established in 2008, Wow! Momo Foods manages three Quick-Service Restaurant (QSR) brands—Wow Momo, Wow China, and Wow Chicken. The company asserts a presence of 620 outlets spanning across 32 cities and provides direct employment to 6,000 individuals.
Additionally, the company has introduced a new format known as Wow Eats, which encompasses all three brands under one roof. Wow Eats made its debut with stores in Chennai and Hyderabad, with intentions to inaugurate the flagship store in Kolkata. Furthermore, the company has future prospects to introduce a fourth vertical, Wow! Kulfi.
Wow! Momo has not yet submitted its financial statements for the previous fiscal year, FY23. In FY22, the company experienced a twofold increase in revenue from operations, reaching INR 220 crore, compared to INR 106 crore in FY21. Notably, the company managed to reduce its losses by 10%, with losses amounting to INR 53.46 crore in FY22.
The company has set ambitious goals for the current fiscal year, FY24, aiming to achieve a top-line revenue of INR 650-700 crore, a significant increase from the INR 435 crore it reported in the previous fiscal year, FY23.