Wow! Momo raises $49 million from Malaysia's Khazanah and OAKS Asset Management

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Wow! Momo Foods, the company that runs brands like Wow! Momo, Wow! China and Wow! Chicken, said it has raised Rs 410 crore (around $49 million) in its largest-ever round from Khazanah Nasional Berhad, the sovereign wealth fund of Malaysia, and OAKS Asset Management.

While Malaysia's Khazanah led the round by investing Rs 350 crore, private equity player OAKS put in the remaining Rs 60 crore, the momo maker said in a press release. Khazanah has backed companies like Xpressbees, Flipkart, TransUnion CIBIL and others in India.

The current round is a mix of primary capital infusion and also involves a secondary share sale component where early investors like the Indian Angel Network (IAN) and Lighthouse Funds will dilute their holdings.

The Tiger Global-backed company said the primary capital will be used to grow and expand the quick service restaurant (QSR) brand. It will also invest in distribution, research and development (R&D).

“There is no greater joy for a founder than giving its initial investors IAN and Lighthouse Funds great partial exits. With Khazanah’s investment into the business and their long-term approach, we will strive to become the powerhouse of innovation and transformation in the food space,” said Sagar Daryani, CEO and co-founder, Wow! Momo Foods.

He added that the Bharat story, or companies catering to non-metro cities, has just begun and the market opportunity is growing. In total, the company aims to enter more than 100 cities and increase its footprint to over 1,500 stores in the next three years. It currently has 630 outlets across 25 cities.

“We are excited to be on the journey with Wow! Momo in their mission to build the largest QSR brand in India. We aim to encourage the growth of Wow! Momo through enhanced scalability, technological fortification, and focusing on building a strong back-end capability to support its growth,” Dato’ Amirul Feisal Wan Zahir, managing director, Khazanah, said.

Launched in August 2008, including the new round, Wow! Momo Foods has raised over $120 million and was last valued at over $260 million, as per Tracxn, a private markets data provider.