Indian fast-food restaurant company Wow! Momo Foods has raised $15m in a Series C funding round to facilitate the launch of fast-moving consumer goods (FMCG) businesses, as well as the expansion of quick-service restaurants (QSR) and cloud kitchens.
Led by Tree Line Investment Management, the funding round saw the participation of Indian Angel Network (IAN) Fund and existing investor Lighthouse Funds.
Backed by investment firm Tiger Global, Wow! Momo Foods was established in August 2008 and operates two QSR brands, namely Wow! Momo and Wow! China.
The chain currently operates 350 outlets of Wow! Momo and more than 50 outlets of Wow! China.
The new capital infusion will also support the launch of the company’s new verticals, which will be announced at a later stage.
Wow! Momo Foods was valued at more than $166m (Rs12.25bn) following the Series C funding round.
Wow! Momo Foods co-founder and CEO Sagar Daryani 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.”
Wow! Momo Foods is engaged in the production of frozen momos and sauces at its manufacturing facilities. The products are later supplied to kiosks, as well as sit-down outlets.
In September 2019, the company was valued at $116m (Rs8.6bn) after it raised capital from Tiger Global.
Wow! Momo Foods plans to open more than 150 stores and 50 cloud kitchens next year, and by next August, it aims to have doubled its growth on a monthly run rate.