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Malaysia’s sovereign wealth fund Khazanah Nasional Berhad acquires 15 per cent in Wow! Momo

The company will use part of the funds (Rs 180 crore) for expansion, while the rest (Rs 220 crore) will provide an exit route to the early stage investors. Along with Khazanah, existing investor OAKS Asset Management will bring in Rs 60 crore in this round

Sambit Saha Calcutta Published 16.01.24, 11:41 AM
Khazanah buys stake

Khazanah buys stake Sourced by the Telegraph

Malaysia’s sovereign wealth fund Khazanah Nasional Berhad has picked up around 15 per cent in Calcutta-based quick service restaurant (QSR) chain Wow! Momo for about Rs 350 crore, valuing the business at over Rs 2,400 crore.

The company will use part of the funds (Rs 180 crore) for expansion, while the rest (Rs 220 crore) will provide an exit route to the early stage investors. Along with Khazanah, existing investor OAKS Asset Management will bring in Rs 60 crore in this round.

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Operating under the Wow! Momo, Wow! China and Wow! Chicken brands, the company has about 630 outlets/kiosks in 35 cities. The plan is to reach 100 cities and take the outlet count to 1,000 in the next 18-24 months and make the business primed for an initial public offer (IPO) on the Indian bourses.

Early stage investors who are exiting include India Angel Network (IAN) and Lighthouse Fund, which was a Series A investor. The IAN is said to be getting returns that are 20 times their investment while Lighthouse is getting six times.

“As a founder, I am delighted that our early stage investors are exiting with a fabulous return on their investment. Simultaneously, it is a matter of great pride that a marquee sovereign fund such as Khazanah is partnering us for the next phase of growth,” Sagar Daryani, founder & CEO of Wow! Momo, said.

The company is going to end the fiscal with a turnover of Rs 500 crore, with Wow! Momo and Wow! China accounting for the bulk of the business. With the new fund raise, the chain plans to beef up presence in the East and the South, two of its stronger business territories. Two new central kitchens/food kitchens are being planned in and around Calcutta and Telangana.

Dato’ Amirul Feisal Wan Zahir, managing director, Khazanah, said, “We are excited to be on the journey with Wow! Momo in their mission to build the largest QSR brand in India.

“We aim to encourage the growth of Wow! Momo through enhanced scalability, technological fortification, and focusing on building a strong back-end capability to support its growth.”

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