Malaysia-based Khazanah invests $42 million in Wow! Momo's Series D funding round

Wow! Momo Foods funding: Quick-service restaurant (QSR) chain Wow! Momo Foods has successfully raised Rs 350 crore in its Series D funding round led by Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia. Existing investor Oaks Asset Management also participated in this round with an investment of Rs 60 crore.

This funding round, which includes both primary infusion and secondary purchase, resulted in partial exits for early-stage (Series A) investors, Indian Angel Network, and Lighthouse Funds. Wow! Momo aims to utilise the funds to fuel its growth and expansion, strengthen its distribution foothold, and support research and development for its Fast-Moving Consumer Goods (FMCG) arm.

The Series D round commenced in September last year, with an initial investment of $16 million, followed by an additional $9 million in October. Cumulatively, ValueQuest Capital, V’oceanInvestment, Oaks, and India have invested $25 million across the first two tranches. The startup data intelligence platform TheKredible estimates that the second tranche was raised at a post-money valuation of Rs $340 million.

Tiger Global, which led Wow! Momo’s Series B round in 2019, did not participate in the Series C or the current (Series D) round.

Wow! Momo, founded in 2008 by Sagar Daryani and Binod Homagai, operates three QSR brands—Wow Momo, Wow China, and Wow Chicken, with 630 outlets across 35 cities and a direct workforce of 6,000 people.

The funding will play a crucial role in supporting Wow! Momo's ambitious plans, include achieving a topline of Rs 650-700 crore in fiscal year 2024, a significant increase from Rs 435 crore in fiscal year 2023.

In addition to this, the company aims to launch over 400 outlets in the next 30 months, enter more than 100 cities, and expand its footprint to over 1,500 stores in the next five years. Wow! Momo is also expanding across various touchpoints in FMCG, with over 1,200 retail outlets in more than 50 cities.

Dato’ Amirul Feisal Wan Zahir, Managing Director of Khazanah, expressed excitement about being on the journey with Wow! Momo and supporting its mission to build the largest QSR brand in India. Vishal Ootam, Founder and CEO of OAKS Asset Management, highlighted the brand's potential to become the first globalised QSR company from India.

Investec acted as the financial advisors to Wow! Momo in this transaction. The company's founder, Sagar Daryani, stated, "With Khazanah’s investment into the business and their long-term approach, we will strive to become the powerhouse of innovation and transformation in the food space while keeping a strong balance between sustainability, growth and backing breakthroughs."