Wow! Momo, a renowned quick-service restaurant chain based in Kolkata, has secured INR 70 crore ($8.3 million) in funding from the indigenous investment firm Z3Partners.
Murali Krishnan, Co-Founder of Wow! Momo, stated that the latest fundraise is an extension of the mega round raised by the startup earlier this year, which saw participation from Malaysian sovereign wealth fund Khazanah Nasional Berhad and OAKS Asset Management.
Continue Exploring: Wow! Momo Foods secures INR 350 Crore funding led by Malaysia’s Khazanah Nasional Berhad, eyes aggressive expansion
Khazanah injected INR 350 Cr into Wow! Momo, while OAKS Capital contributed INR 60 Cr in the same funding round. With this latest infusion, the QSR chain’s funding round amounts to a total of INR 480 Cr (approximately $57 Mn).
The startup’s valuation remains unchanged since its last fundraising announcement in January of this year. Utilizing the newly acquired funds, the Kolkata-based startup aims to expand its QSR brand’s presence, enhance distribution channels, and bolster research and development (R&D) efforts for its FMCG division.
In addition to Wow! Momo, the startup operates two other brands: Wow! China and Wow! Chicken.
Wow! Momo stated that out of the total INR 480 Cr raised, INR 270 Cr constituted primary infusion, with the remaining INR 210 Cr utilized for secondary purchases from its early-stage investors.
Krishnan also mentioned that the startup has amassed approximately INR 625 Cr to INR 640 Cr in funds since its establishment.
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Wow! Momo Co-Founder and CEO Sagar Daryani expressed, “This marks just the beginning for us. We’ve maintained consistency, resilience, and a sharp focus on sustainable growth. The trust demonstrated by this round of investors strengthens our resolve and inspires us to drive meaningful change. We believe Z3Partners brings a robust strategic perspective, enhancing our strategic direction moving forward.”
Meanwhile, Rishi Maheshwari, Managing Partner at Z3Partners, commented, “This investment perfectly aligns with our thesis of supporting scalable businesses operating in sizable markets, utilizing technology to enhance efficiency throughout the value chain. We are delighted to collaborate with Wow! Momo as it expands its presence across India, aiming to establish itself as the premier indigenous QSR brand.”
Wow! Momo was founded in 2008 by Sagar Daryani, Binod Kumar Homagai, and Shah Miftaur Rahman. Murali Krishnan was elevated as a Co-Founder in 2022. With over 600 outlets across 38 cities, the QSR chain aims to expand its presence to over 1,500 stores within the next three years.
Although the startup has not yet filed its financial statements for the fiscal year 2022-23 (FY23), it experienced a significant increase in operating revenue, more than doubling year-on-year (YoY) to INR 219.8 Cr in FY22. Furthermore, the net loss decreased by 10% to INR 53.4 Cr in FY22 from INR 59.4 Cr in FY21.
Continue Exploring: Wow! Momo reports massive 2x revenue surge in FY2021-22, reaches INR 219.8 Crores