Wow! Momo Foods Secures Rs 350 Crore Funding from Khazanah
Wow! Momo Foods achieves a significant milestone with a Rs 350 crore funding injection from Khazanah Nasional Berhad, Malaysia's sovereign wealth fund. This marks the company's most substantial fundraising effort, coinciding with strong double-digit growth in the broader food services sector, driven by the widespread popularity of momos as an affordable snack in India. The investment involves a combination of primary infusion and secondary purchase from early-stage investors, including Indian Angel Network and Lighthouse Funds. Furthermore, existing investor Oaks Asset Management contributes an additional Rs 60 crore in this funding round.
Sagar Daryani, the CEO and Co-Founder of Wow! Momo Foods, confirmed the development, stating that the funding round will facilitate an exit for angel investors from The Indian Angel Network (IAN) and a partial exit for series A investor Lighthouse Funds. Daryani expressed the company's commitment to transforming the food space. Since its launch in August 2008, Wow! Momo has expanded to 630 stores across more than 35 cities, with approximately one-third being small-format or kiosk stores located in malls, tech parks, and hypermarkets. The brand has successfully carved a niche for itself in a relatively uncompetitive national landscape, capitalizing on the popularity of its cuisine in India. The company operates three sub-brands: Wow! Momo, Wow! China, and Wow! Chicken.
The primary funding infusion will be directed towards fueling brand growth, expanding distribution channels, and supporting research and development for the FMCG arm, which sells packaged frozen ready-to-eat momos through retail stores and e-commerce platforms. Daryani indicated that the chain is poised to expand to an additional 100 cities, aiming for a footprint of over 1,500 stores within the next three years. Despite heightened competition and the entry of global brands into India, the recent fundraising attests to renewed investor interest in the food services sector.
According to ratings firm Icra, India's fast-foods and quick-service restaurant companies are expected to add around 2,300 stores between FY23 and FY25, with an estimated capital expenditure of Rs 5,800 crore. This trend reflects increased affordability and growing consumer demand for fast foods. With a post-money valuation exceeding Rs 2,400 crore, Wow! Momo has raised Rs 500 crore to date, excluding the current funding round, with founders, promoters, and workers collectively holding a 45% ownership stake.
Sagar Daryani, the CEO and Co-Founder of Wow! Momo Foods, confirmed the development, stating that the funding round will facilitate an exit for angel investors from The Indian Angel Network (IAN) and a partial exit for series A investor Lighthouse Funds. Daryani expressed the company's commitment to transforming the food space. Since its launch in August 2008, Wow! Momo has expanded to 630 stores across more than 35 cities, with approximately one-third being small-format or kiosk stores located in malls, tech parks, and hypermarkets. The brand has successfully carved a niche for itself in a relatively uncompetitive national landscape, capitalizing on the popularity of its cuisine in India. The company operates three sub-brands: Wow! Momo, Wow! China, and Wow! Chicken.
The primary funding infusion will be directed towards fueling brand growth, expanding distribution channels, and supporting research and development for the FMCG arm, which sells packaged frozen ready-to-eat momos through retail stores and e-commerce platforms. Daryani indicated that the chain is poised to expand to an additional 100 cities, aiming for a footprint of over 1,500 stores within the next three years. Despite heightened competition and the entry of global brands into India, the recent fundraising attests to renewed investor interest in the food services sector.
According to ratings firm Icra, India's fast-foods and quick-service restaurant companies are expected to add around 2,300 stores between FY23 and FY25, with an estimated capital expenditure of Rs 5,800 crore. This trend reflects increased affordability and growing consumer demand for fast foods. With a post-money valuation exceeding Rs 2,400 crore, Wow! Momo has raised Rs 500 crore to date, excluding the current funding round, with founders, promoters, and workers collectively holding a 45% ownership stake.
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