Wow! Momo eyes Rs 150cr funding

Wow! Momo, one of the leading QSR (quick service restaurant) momo chains in India and a successful startup from Bengal, is planning another round of funding of Rs 120-150 crore, the biggest so far in its history. The momo major will appoint an investment banker by the end of this month for this round. Lighthouse Fund, Indian Angel Network (IAN) and the founder of Fab India have already invested in this QSR chain, which is now venturing into Chinese cuisine through a new brand named Wow! China.

Sagar Daryani, the co-founder and CEO of the chain, is hoping that the valuation of the company would be much more than Rs 300 crore, which was calculated in early 2018. Some leading global and Indian private equity players have already shown interest in the company, indicated Daryani.

According to the CEO and co-founder, it is likely to raise the fund between April and September this year. “This will be primary money for business through new issue of shares to the investors. Now, the founders hold 75% in Wow! Momo Foods Private Limited that operates Wow! Momo and will now operate Wow! China. The rest 25% is with investors. Lighthouse holds 18% and IAN 5% and William Bissell of Fab India holds around 2%. “How far we shall dilute our stake would depend on the valuation,” Daryani added.

When IAN had invested in Wow! Momo, the valuation was pegged at Rs 100 crore, which went up to Rs 230 crore in 2017 during funding of Lighthouse. Daryani pointed out that Wow! China intends to do with Chinese food what Wow! Momo did with momos, i.e., give the road-side cuisine the look and feel of a brand.

“There is no denying that Chinese food is extremely popular in India. In north India, the second most popular cuisine is Chinese after north Indian food and likewise in South India, the second most popular cuisine is Chinese after south Indian. The idea behind Wow! China is to provide Indian customers with palate-tingling flavours of roadside stalls coupled with standard Chinese dishes from expensive restaurants at economical prices with a touch of innovation,” he added.

Wow! Momo has registered Rs 120 crore revenue in 2018-19 and hoping to touch Rs 200 crore in the current financial year. “We are also planning to open 40 Wow! China and 100 Wow! Momo outlets in the next one year,” Daryani said.

Now, it has 240 outlets across 13 cities in the country. Sanjeev Bikhchandani, IAN Lead Investor at Wow! Momo who is also part of the advisory board, said, “We are delighted to witness the meteoric rise of Wow! Momo. It is hardly surprising that the brand has received the reception it has got.”

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/wow-momo-eyes-rs-150cr-funding/68787681