Wow! Momo raises Rs 410 crore from Malaysia-based sovereign wealth fund Khazanah, other investors

Kolkata-based Wow! Momo Foods, which owns and operates Wow! Momo, Wow! China, and Wow! Chicken, has raised Rs 410 crore ($49 million) in a Series D funding round led by Malaysia’s sovereign wealth fund Khazanah Nasional Berhad, with participation from existing investor OAKS Asset Management.

Khazanah Nasional Berhad invested Rs 350 crore, while Oaks Asset Management, an existing investor, infused Rs 60 crore in the round.

The fundraising, which includes primary and secondary infusion, will give partial exit to some existing investors, Light House Funds and Indian Angel Network.

Focused on expansion and R&D capabilities 

According to the startup, the raised will be used to strengthen the distribution and R&D capabilities of Wow! Momo Foods' FMCG arm. Currently, It has over 630 outlets in more than 35 cities, with plans to add another 200 outlets in the coming fiscal year.

Launched in 2008 by Sagar Daryani & Binod Homagai, Wow! Momo also aims to enter over 100 cities and establish a footprint of over 1,500 stores in three years. Additionally, It is expanding its FMCG presence across various touchpoints in over 50 cities.

Wow! Momo's shareholding 

According to media reports, the funding round values Wow! Momo at over Rs 2,400 crore and will allow the founders to retain a 45% stake in the company. Meanwhile, the stakes of Light House Funds and Indian Angel Network will be reduced to 7% and 2%, respectively.

“There is no greater joy for a founder than giving its initial investors IAN and Lighthouse Funds great partial exits. With Khazanah’s investment into the business and their long-term approach, we will strive to become the powerhouse of innovation and transformation in the food space,” said Sagar Daryani, CEO and co-founder, Wow! Momo Foods.

How well Wow! Momo is performing financially?

With a target topline of Rs 650-700 crore in FY24, up from Rs 435 crore in FY23, Wow! Momo is gearing up for significant growth. The company is also focusing on launching new product launches and enhancing its FMCG presence. 

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