In a major funding development, Wow! Momo Foods, the company behind popular brands like Wow! Momo, Wow! China, and Wow! Chicken, has successfully raised Rs 410 crore (approximately $49 million). The funding round, the largest in the company’s history, was led by Malaysia’s sovereign wealth fund, Khazanah Nasional Berhad, which invested Rs 350 crore. OAKS Asset Management, a private equity firm, contributed the remaining Rs 60 crore, as announced in a press release by the momo maker.
Khazanah, known for backing prominent Indian companies like Xpressbees, Flipkart, and TransUnion CIBIL, played a pivotal role in spearheading this funding round. Wow! Momo revealed that the investment will be utilized for the growth and expansion of its quick-service restaurant (QSR) brand, along with investments in distribution, research and development (R&D).
The funding comprises a combination of primary capital infusion and a secondary share sale component, with early investors such as the Indian Angel Network (IAN) and Lighthouse Funds diluting their holdings. Wow! Momo, backed by Tiger Global, aims to leverage the investment to reinforce its position as a leading player in the QSR segment.
Sagar Daryani, CEO and co-founder of Wow! Momo Foods, expressed his joy at providing early investors with partial exits and highlighted the company’s commitment to innovation and transformation in the food space. He emphasized the untapped potential in non-metro cities, stating that the Bharat story has just begun, with plans to enter over 100 cities and expand its footprint to over 1,500 stores in the next three years. Currently, Wow! Momo operates 630 outlets across 25 cities.
Dato’ Amirul Feisal Wan Zahir, Managing Director of Khazanah, expressed excitement about the partnership, stating, “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.”
Since its launch in August 2008, Wow! Momo Foods has raised over $120 million, with the latest valuation standing at over $260 million, according to Tracxn, a private markets data provider. With this significant funding injection, Wow! Momo is well-positioned to advance its mission of becoming the largest QSR brand in India, capitalizing on the booming market opportunities and emphasizing technological advancements and back-end capabilities.
Sources By Agencies