Wow! Momo raises funds
Wow! Momo Foods has raised Rs 125 crore in the latest round of funding, widening the valuation of the company by 1.8 times in the last 12 months, even as investors turn cautious towards the start-up universe.
The company which sells momos and chicken through its 480 odd outlets will be valued at Rs 2,125 crore after OAKS Asset Management’s investment.
It plans to raise another Rs 100 crore in the next quarter. So far the company has raised about Rs 375 crore from investors, including Tiger Global.
The founders, promoters and employees (through ESOPs) hold about 52 per cent stake in Wow! Momo Foods.
Launched in August 2008, the quick service restaurant chain is now earning Rs 40 crore a month and is Ebidta positive.
The company is hoping to end FY 2023 with a topline of Rs 450 crore compared with Rs 220 crore a year ago.
So far it has added 118 stores and the plan is to open a similar number of outlets in the second half of the fiscal, taking the combined count to 600 by the end of FY2023.
While the chain has diversified to Chinese cuisine, fried and grilled chicken and packaged frozen momo as an FMCG item, Wow! Momo will still contribute 70 per cent to the revenue.
Sagar Daryani, CEO and co-founder of Wow! Momo Foods, said the latest round of funding and growth in the company’s valuation in the last year underscores that a sustainable, profitable and scalable business would always have takers.
“We are entering a phase of rapid growth and in new geographies. This investment would power our ambition, apart from adding muscle to our FMCG foray,” he said.