[Funding alert] Tiger Global-backed Wow! Momo raises over $15M in Series C led by Tree Line Investment Management
QSR chain Wow! Momo Foods, which currently owns and operatesand Wow! China, has raised Series C funding of over $15 million, led by Tree Line Investment Management. The round also saw participation from IAN Fund (Indian Angel Network), as well as existing investor Lighthouse Funds.
The fresh funds will enable the brand to amplify efforts on its newly launched FMCG business, add more energies to the expansion of its QSR & Cloud Kitchen brands and also fuel its growth in the launch of its new verticals to be announced soon, the company said in a statement. It added that with the fresh funding, the company is now geared towards crafting the story of Wow 2.0 post its latest pivot.
Launched in August 2008, the QSR chain is currently present across over 350 outlets of Wow! Momo and 50 outlets of Wow! China. In the next year, the company is planning to set up over 150 stores and 50 cloud kitchens as well as grow 2x plus on monthly run rate by next August.
Wow! Momo co-founders (L-R) Binod Homagai, Sagar Daryani, and Shah Miftaur Rahman
According to the company, the Series C makes Wow! Momo Foods "the most valued homegrown QSR brand with a thumping valuation of over Rs 1225 crore; this is a formidable leap from its last valuation of Rs 860 crores in September 2019, when it raised money from Tiger Global; considering the brand's persistent efforts of pivoting, bouncing back profitably and outstanding efforts during pandemic".
Sagar Daryani, CEO & Co-founder, said:
“When we started off with Wow! Momo and 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 – the fabric of Wow! is to serve health, hygiene and happiness on a platter."
Earlier this quarter, Wow! Momos also made its foray into FMCG space, launching ready to eat momos to make them accessible to individuals anytime and anywhere. The ready-to-eat momos are exclusively available on Big Basket and will soon be accessible across other ecommerce channels and modern trade platforms, and post six months, in Tier-II and III cities as well, the company said in a statement.
Zaheer Sitabkhan, Founder of Tree Line Investment Management said, “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 story.”