Wow! Momo Foods Secures Rs 350 Crore Funding Boost from Khazanah

Wow! Momo Foods achieves a record-breaking Rs 350 crore investment from Khazanah Nasional Berhad, Malaysia's sovereign wealth fund.

The funding will involve a combination of primary capital injection and the acquisition of shares from initial backers, namely Indian Angel Network and Lighthouse Funds.

As part of this funding round, Oaks Asset Management, an existing investor, has further contributed Rs 60 crore to support the company's growth.

The funding round will facilitate the exit of angel investors associated with The Indian Angel Network (IAN) and partially exit the series A investor, Lighthouse Funds.

The company aims to bring about significant changes in the food sector as it moves forward.

Established in August 2008, Wow! Momo manages a network of 630 stores spread across over 35 cities. Approximately one-third of these stores are compact formats or kiosks situated in malls, tech parks, and hypermarkets.

The brand has successfully distinguished itself in a market with limited competition on a national scale, capitalizing on the widespread appeal of its cuisine in India. The company oversees three sub-brands: Wow! Momo, Wow! China, and Wow! Chicken.

The main funding will drive the brand's growth and expansion, enhance distribution channels, and support research and development for the FMCG arm.

This division focuses on selling packaged frozen ready-to-eat momos through retail stores and e-commerce platforms.

Daryani expressed confidence that the chain is on schedule to extend its presence to an additional 100 cities, aiming for a network of more than 1,500 stores within the next three years.

Company executives highlighted that the recent funding round underscores a resurgence in investor interest in the food services sector, despite increased competition and the entry of global brands into the Indian market.

According to Icra, fast-food and quick-service restaurant companies in India are projected to incorporate approximately 2,300 new stores from fiscal year 2023 to fiscal year 2025.

They are expected to allocate an estimated capital expenditure of Rs 5,800 crore, leveraging the growing affordability and heightened consumer demand for fast foods.

Having achieved a post-money valuation exceeding Rs 2,400 crore, the chain has garnered Rs 500 crore in total funding, excluding the ongoing round.

The founders, promoters, and employees collectively own 45% of the ownership stake in the company.