QSR brand Wow! Momo Foods raises $15mn in Series C funding round

Tiger Global-backed QSR brand Wow! Momo Foods has raised $15 million in a Series C funding round led by Tree Line Investment Management. The funding round also saw participation from IAN Fund (Indian Angel Network), as well as existing investor Lighthouse Funds.

The fresh funds will enable the brand to amplify efforts on its newly launched FMCG business, add more energy to the expansion of its QSR sloud kitchen brands and also fuel its growth in the launch of its new verticals to be announced soon.

The Series C funding round values the QSR brand at over Rs 1,225 crore. The company was valued at Rs 860 crore in September 2019 when it raised money from Tiger Global.

Wow! Momo Foods operates two QSR brands—Wow! Momo and Wow! China. Launched in August 2008, the multi-billion-rupee QSR chain currently operates 350 outlets of Wow! Momo and more than 50 outlets of Wow! China.

In the next year, the company is planning to set up over 150 stores and 50 cloud kitchens, and grow more than two times on monthly run rate by next August.

Sagar Daryani, CEO & co-founder, Wow! Momo Foods, said “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 reengineered 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.”

Earlier this quarter, Wow! Momos also made its foray 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 modern trade platforms, and after six months, in tier-II and III cities 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”

Last two years, according to Daryani have been pivotal for brand Wow! Momo and Wow! China; from growing the online delivery business by 7X to creating strategic partnerships or be it seeding new verticals of FMCG. It has been power packed and a tale of an absolute bounce back!

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