Kolkata's QSR chain Wow! Momo raises Rs 70 crore led by Z3Partners

Kolkata-based quick service restaurant chain Wow! Momo has raised Rs 70 crore in an extended Series D funding round led by Z3Partners. The round brings its all-time raise to Rs 480 crore. 

The round included both primary investments and secondary share purchases. Notably, the primary funding was Rs 270 crore, with the remaining Rs 210 crore sourced from secondary sales involving early investors such as the Indian Angel Network and Lighthouse Funds.

CEO emphasizes the significance of this funding

Previously, in January, Wow! Momo raised Rs 410 crore, led by Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia, with contributions from OAKS Asset Management. This funding round maintained the company's valuation at approximately Rs 2,460 crore.

The company's CEO, Sagar Daryani, emphasized the significance of this funding, stating, "We have been consistent, resilient and sharp-focused on sustainable growth, and the belief this round of investors have shown on us fortifies our faith and further motivates us to be change-makers."

Growth and expansion plans

The brand plans to use the raised funds for the growth and expansion of its QSR brand, which currently includes Wow! Momo, Wow! China, and Wow! Chicken. It aims to increase its footprint to over 100 cities and establish more than 1,500 stores within the next three years.

Furthermore, the funds will enhance the distribution network and bolster research and development for its FMCG arm, which it entered in July 2021.

How well is Wow! Momo performing financially? 

Founded in 2008, Wow! Momo operates 630 outlets across 38 cities and directly employs 6,000 people. The company plans to add 200 outlets during the current fiscal year (FY25). 

It is targeting a topline of Rs 650-700 crore in FY24, up from Rs 435 crore in FY23. Revenue from operations notably doubled to Rs 220 crore in FY22 from Rs 106 crore in FY21, reflecting robust growth and operational success.

Investors comment

"Wow! Momo is in true sense, a reflection of the vibrant entrepreneurial landscape in the country," Z3Partners Managing Partner Rishi Maheshwari said, adding that the QRS chain has singularly focused on building a high-quality food business at scale, fuelled by superior execution expertise.