The raised funds will be utilized in escalating and expanding the company’s latest launch of FMCG business as well as its QSR and cloud kitchen brands.
The Kolkata-based fast food chain, Wow! Momo has raised $15 million piloted by Tree Line Investment Management in a Series C round of funding valuing at $ 175 million.
Along with existing investor Lighthouse Funds, the funding round also marked the contribution of Indian Angel Network (IAN).
The Series C funding led to a noticeable difference in the company’s valuation from its last valuation of $ 120 million after raising funds from Tiger Global in the year 2009.
The newly raised funds will be utilized in escalating the operations in order to boost and expand the company’s latest launch of FMCG( fast-moving consumer goods) business. In addition, it will be used to augment its quick-service restaurant (QSR) together with the cloud kitchen brands.
Established in 2008, the Tiger Global-backed QSR chain currently manages over 350 outlets of Wow! Momo and approximately 50 outlets of Wow! China. The company’s short-term future plans include building up over 150 stores and 50 cloud kitchens next year.
“When we started off with Wow! Momo & later Wow! China, we were confident about the potential that the market holds. We had a clear roadmap on first strengthening our restaurant business, followed by a foray into FMCG space. We have reengineered our core during the last few years; we want to be a brand that makes good food and food good! Be it QSR or FMCG or plugging the nutritional gap,” said Sagar Daryani, CEO and Co-founder of Wow! Momos Foods Pvt Ltd.
The QSR company stepped its foot into the ready-to-eat snacks segment earlier this year in the month of July starting its journey in the FMCG space. It targets an annual turnover of Rs. 500 crore over the next five years from its packaged foods business as confirmed earlier by Daryani.
With 350 outlets across 17 cities in India, the company plans to expand its operations globally and raise an IPO in a few years. The last two years have been no less than a turning point for the company Wow! Momo as well as Wow! China. From developing its online fast food delivery business to stepping into the FMCG space, it is all set to build milestones in the Indian food industry.
Tree Line Investment Management’s founder, Zaheer Siitabkhan shared, “Wow! Momos has demonstrated a keen focus on delighting Indian consumers with both taste and value. As India is rapidly emerging from covid, we are enthusiastic about their growth plans both in the QSR and ready to eat category. We are excited to join Wow! Momos on their path for growth, and wish them well in this next chapter of their history.”
Set up in 2006, Tree Line is a Singapore and Hong Kong-based investment fund which aims to claim capital gains growth opportunities in the region for medium and long-term investment. It has been investing in Westlife development whose subsidiary Hardcastle Restaurants operates the main franchisee of McDonald’s chain.