Wow! Momo Foods, one of the leading quick-service restaurant (QSR) fast-food chains in India has raised a round of funding worth $23 million led by Tiger Global. Lighthouse Fund, Indian Angel Network (IAN) and Fab India have already invested in this QSR chain. Following the investment, the restaurant chain is now valued at $120 million (Rs 860 crore) which is a significant scale-up from Rs 300 crore valuation which it had achieved after securing Rs 3 crore from Fabindia in 2018.
The company is currently clocking a monthly run rate of over Rs 15 crore and opening over 10 new stores every month and is projected to get to a topline of around Rs 190 crore for FY 19-20.
Sagar Daryani, chief executive officer and co-founder of Wow! Momo, said, "This partnership is indeed a big step forward in our endeavour to become an Indian origin QSR chain with an aim to go global in times to come. We will smartly use the capital infused to further scale our operations backed with disruptive research and development to reach out to a larger consumer base within the country.”
Incepted in a garage by two students of St Xavier’s College with an initial investment of only Rs 30,000, the Kolkata-based startup has 282 outlets of Wow! Momo and 11 outlets of its newest brand Wow! China spread across 15 cities combined.
The startup had launched its sister brand Wow! China in March 2019.
In 2015, Wow! Momo had raised Rs 10 crore from its first backer, Indian Angel Network lead by Sanjeev Bikhchandani, Saurabh Srivastava and Ashvin Chadha.
After 18 months of the investment, the investors took a partial exit from Wow! Momo at an IRR of 50 percent in the subsequent round of equity funding by Lighthouse Funds in 2017 at Rs 230 crore.
First Published: Sept 19, 2019 8:00 AM IST