QSR chain Wow! Momo Raises $ 15M in Series C Funding

Fast food chain Wow! Momo said it raised $ 15 million in a Series C round of funding led by Tree Line Investment Management and raised its valuation to over Rs.1,225 billion, or $ 165 million. The IAN Fund and the existing investor Lighthouse Funds also took part in the financing round.

The company will use the fresh funds on its newly launched FMCG business – Ready-to-Eat-Momos – to energize the expansion of its QSR cloud kitchen brands and also launch its new industries, which will be announced shortly will.

Started in 2008, Wow! Momo Foods operates two QSR brands – Wow! Momo and Wow! China. It currently operates 350 branches of Wow! Momo and more than 50 Wow! China, and the company plans to have 150+ stores and 50 cloud kitchens in the next year.

The company announced that it will more than double the monthly term by next August.

Earlier this year, wow! Momo had ventured into the FMCG space after launching ready-to-eat momos, currently exclusively available on BigBasket. According to the company, these items will soon be available on other e-commerce platforms as well as in Tier 2 and Tier 3 cities in six months.

Last October, Wow! Momo had $ 6.1 million in a. collected Debt round financing Chennai-based Anicut Capital to primarily pay off Avendus Finance’s old debts after the company took out $ 5 million 2018 indebted.

In 2019, Tiger Global also had a $ 23 million round in Wow! Momo, which was considered an unusual bet for the New York hedge fund at the time. Atypical for Tiger Global is Wow! Momo is still one of the few companies that the hedge fund has not supported a second time since its first investment.

Other examples where Tiger Global did not participate in subsequent rounds are Vedantu, MyGate, Roposo and Ninjacart and INDMoney.

While Wow! Momo has yet to file its annual accounts for FY21, the company had operating sales of FY204 of 164.98 billion. During the reporting period, its total expenditures increased 44.6% to Rs.170.84 billion. The company was on the verge of reaching profitability as it only posted a loss of Rs.2.39 billion in FY20.

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