Just looking like a Wow! Momo chain raises Rs 350 crore
Wow! Momo Foods has raised ₹350 crore from Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia. This is the company's biggest fund raise and comes amid robust double-digit growth in overall food services, in addition to low price points and popularity of momos as a snack in India.
The investment will be made through both primary infusion and secondary purchase from early-stage investors, Indian Angel Network and Lighthouse Funds.
Existing investor Oaks Asset Management also infused an additional Rs 60 crore in this round.
Sagar Daryani, co-founder and chief executive of Wow! Momo Foods, confirmed the development to ET.
The round will give an exit to angel investors from The Indian Angel Network (IAN) and a part exit to series A investor Lighthouse Funds, he said, adding «We will strive to transform the food space».
Launched in August 2008, Wow! Momo operates 630 stores across more than 35 cities, about a third of which are small-format or kiosk stores in malls, tech parks and hypermarkets.
The brand carved a niche for itself amid limited competition nationally and capitalised on the popularity of the cuisine in India. The company operates three sub-brands-Wow! Momo, Wow! China and Wow! Chicken.
The primary fund will fuel the growth and expansion of the brand, strengthen distribution, and research and development for the FMCG arm, which sells packaged frozen ready-to-eat momos in retail stores and e-commerce platforms.
Daryani said the chain is on track to expand to another 100 cities and a footprint of over 1,500 stores in three years.
Executives said the latest fund raise is a testament to food services showing renewed investor interest, even amid heightened competition and an influx of global brands
