Wow! Momo raises Rs 125 crore from OAKS Asset Management
The company is also set to raise another Rs 100 crore in the next quarter
Wow! Momo Foods that operates with 3 Brands; Wow! Momo, Wow! China and Wow! Chicken, has raised over USD 15 Million from OAKS Asset Management. The funding is a part of a two tranche-raise with the second one being planned with another VC Fund. The fresh funds will enable to brand to build strong back-end capabilities to enter into Tier 1 & Tier 2 markets of the country. The brand is now across 21 cities and has over 480 outlets; aim it to enter over 100 cities with the new expansion plan. The funds will also be utilised to fortify the FMCG growth.
Launched in August 2008, the multi-billion-rupee QSR chain currently has a monthly revenue run-rate of over INR 40 crore and plans to double its growth by June next year. The brand is poised to end the financial year with a topline of over INR 450 cores as opposed to INR 220 Crores recorded in the last fiscal year. With robust expansion plan of over 250 outlets this fiscal year, supported by a network of over 50 Wow! Chicken stores and some strong brands for acquisition – the Wow! Momo story is expected to be power-packed in the next 24 months.
This round makes Wow! Momo Foods one of the strongest domestic players in the Indian QSR space. This is a testimony to the brand’s strong business vision, execution capabilities and focus on sustained profitability.
Commenting on the announcement, Sagar Daryani, CEO & Co-Founder, said “You only grow when the ecosystem around you grows; even in such riotous times, good profitable, sustainable and scalable business models will always find right backing & that is the faith with which we started our first outlet in 2008. As i keep saying we are a brand that is funded by the consumers and guided by the investors”
Vishal Ootam, Founder & CEO of OAKS Asset Management said, We are excited to partner with Wow! Momo. With a track record of having partnered with some of the best entrepreneurs in the Indian F&B space, we are excited to see the execution by the Wow Momo team. We expect Wow! Momo to not only gain domestic market share in India but also to be the first global sized QSR company from India”
Earlier this year, Wow! Momo launched its 3rd brand Wow! Chicken- a QSR brand which is Indianizing fried & grilled chicken in the country. The company plans to take this brand across all major metros and Tier-2 and Tier 3 cities over the next 24 months. Also the ready to eat momos launched earlier has gone through a rechristening in terms of production technology & refreshed packaging! Soon to be available across all leading grocery chain and ecom platforms in the coming quarter.
In the transaction, Investec acted as the financial advisors to Wow! Momo. With this latest Series D funding, Wow! Momo Foods has been able to reinstate the resilience of Indian QSR. It sets the recipe straight; all you need is a strong leadership team, a Pan-India footprint, sharp unit economics, great growth parameters and most importantly sustained profitability; that’s what has made Wow! Momo a coveted brand amongst the investors.
