Kolkata-based popular QSR chain Wow! Momo has raised INR 70 Cr ($8.3 Mn) from homegrown investment firm Z3Partners.
Wow! Momo cofounder Murali Krishnan told Inc42 that the latest fundraise is an extension of the mega round raised by the startup earlier this year that saw participation from Malaysian sovereign wealth fund Khazanah Nasional Berhad and OAKS Asset Management.
While Khazanah invested INR 350 Cr in Wow! Momo, OAKS Capital pumped INR 60 Cr during the round. With the latest addition, the QSR chain has raised INR 480 Cr (about $57 Mn) in the funding round.
There has been no change in the startup’s valuation since the last fundraise announcement in January this year. The Kolkata-based startup will use the fresh proceeds to expand the footprint of its QSR brand, strengthen distribution and shore up research and development (R&D) for its FMCG arm.
Besides Wow! Momo, the startup runs two more brands – Wow! China and Wow! Chicken.
In a statement, Wow! Momo said that INR 270 Cr (out of the total INR 480 Cr) was primary infusion while the remaining INR 210 Cr was secondary purchase from its early-stage investors.
Krishnan also told Inc42 that the startup has raised around INR 625 Cr to INR 640 Cr since its inception.
“For us this is just the beginning; we have been consistent and resilient and sharp-focused on sustainable growth & the belief this round of investors have shown on us fortifies our faith and further motivates us to be change makers. Z3Partners, we felt, have a strong strategic lens, which will only strengthen our guardrails going forward,” said Wow! Momo cofounder and CEO Sagar Daryani.
Meanwhile, Z3Partners managing partner Rishi Maheshwari said,”… This perfectly aligns with our investment thesis of backing scalable businesses with large addressable markets that leverage technology to drive efficiencies across the value chain. We are proud to partner with Wow! Momo as it embarks on its journey to deepen its reach across India in becoming the leading homegrown QSR brand in India.”
Wow! Momo was founded in 2008 by Daryani, Binod Kumar Homagai and Shah Miftaur Rahman. Krishnan was elevated as the cofounder in 2022. The QSR chain claims to have more than 600 outlets spanning 38 cities and has set its eyes on scaling its footprint to more than 1,500 stores in the next three years.
While the startup is yet to file its financial statements for the fiscal year 2022-23 (FY23), it saw its operating revenue more than double year-on-year (YoY) to INR 219.8 Cr in FY22. Net loss declined 10% to INR 53.4 Cr in FY22 from INR 59.4 Cr in FY21.
