Quick-service restaurant (QSR) chain Wow! Momo has raised over Rs 125 crore (over $15 million) from mid-market private equity firm OAKS Asset Management as part of the first tranche of its Series D round of funding.
The current deal has been struck at a post money valuation of Rs 2,125 crore ($266 million)
The Kolkata-based firm will be raising another Rs 100 crore in next 3-4 months in the second tranche of the round with an unnamed venture capital fund, as per a press statement.
A source said that the company could end up being valued at $280 million - $300 million post completion of second tranche.
The fresh infusion will enable the Tiger Global-backed firm to primarily build strong back-end capabilities to enter into Tier 1 and Tier 2 markets of the country. The company has currently over 480 stores across three brands- Wow! Momo, Wow! China and Wow! Chicken in across 21 cities and aims to enter new 100 cities.
“We expect Wow! Momo to not only gain domestic market share in India but also to be the first global sized QSR company from India,” said Vishal Ootam, founder & CEO at OAKS Asset Management.
OAKS, which is in the process to raise Rs 1000 crore for its consumer sector centric fund, has invested in food catering company Foodlink, InCred, CredAble and ethnic wear maker Shree in the past. It also counts Hero Electric among its portfolio firm.
Wow! Momo, launched in 2008, has plans to launch 250 additional stores in this fiscal year (FY2022-23). It has also lined up a few acquisitions in pipeline.
The company had raised $15 million in its last round of funding in September 2021 and claimed it achieved post money valuation of Rs 1,225 crore.
The firm had also launched its ready-to-eat momos under its FMCG category last year. These momos are available on Bigbasket and are available across other e-commerce channels and modern trade platforms.
In early 2019, Wow! Momo had raised Rs 120 crore from US-based marquee hedge fund Tiger Global Management. In 2017, it secured Rs 40 crore from Lighthouse Funds, and in 2015 got money from Indian Angel Network.
The brand is likely to end the current financial year with a topline of over Rs 450 crore as opposed to Rs 220 crore recorded in the last fiscal year, the statement added.