Tiger Global-backed Quick service restaurant (QSR) brand Wow Momo Foods has raised $15 million in a Series C funding round headed by Tree Line Investment Management. The funding round also witnessed participation from IAN Fund (Indian Angel Network), as well as current investor Lighthouse Funds.
The recent funds will allow the brand to magnify energies on its newly started FMCG firm, add more energy to the enlargement of its QSR cloud kitchen brands and also fire its growth in the launch of its new verticals to be declared soon.
The Series C investment round values this QSR brand at over Rs 1,225 crores. The business was estimated at Rs 860 crore in September 2019 when it gathered money from Tiger Global.
Wow! Momo Foods serves two QSR brands—Wow! Momo and Wow! China. Started in August 2008, the multi-billion-rupee QSR chain currently runs 350 outlets of Wow Momos and more than 50 outlets of Wow! China.
In the next year 2022, the business is planning to set up over 150 stores and 50 cloud kitchens and grow more than two times on a monthly run rate by the following August.
Sagar Daryani, CEO & co-founder, Wow Momo Foods, told “When we started off with Wow Momo & later Wow! China, we were confident about the potential that the market holds. We had a clear roadmap on first strengthening our restaurant business, followed by a foray into FMCG space. We have re-engineered our core during the last few years; we want to be a brand that makes good food and food good! Be it QSR or FMCG or plugging the nutritional gap.”
Presently this quarter, Wow Momos also made its venture into FMCG space, launching ready-to-eat momos. The ready to eat momos are exclusively available on Big Basket and will soon be accessible across other e-commerce channels and advanced trade platforms, and after six months, in tier-II and III towns as well.
Zaheer Sitabkhan, founder of Tree Line Investment Management, said, “Wow Momos has demonstrated a keen focus on delighting Indian consumers with both taste and value. As India is rapidly emerging from covid, we are enthusiastic about their growth plans both in the QSR and ready to eat category. We are excited to join Wow Momos on their path for growth, and wish them well in this next chapter of their story”
The last two years, according to Daryani have been crucial for brand Wow Momo and Wow! China; from improving the online delivery business by 7X to creating strategic partnerships or be it planting new verticals of FMCG. It has been power-packed and a tale of an absolute bounce back!