Wow! Momo Foods Secures Rs 350 Crore Funding Boost from Khazanah

Amidst Rapid Growth in Food Services and Popularity of Momos, Wow! Momo Foods Raises Record-Breaking Funding Round

Wow! Momo Foods, the leading chain of momo outlets in India, has successfully raised a staggering Rs 350 crore in funding from Khazanah Nasional Berhad, the prestigious sovereign wealth fund of Malaysia. This remarkable investment marks the company’s largest funding round to date, a testament to the robust double-digit growth in India’s overall food services industry and the undeniable appeal of momos as a beloved snack across the nation.

Wow! Momo
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Expansion and Momentum: A Recipe for Success

Fuelled by the infusion of funds, Wow! Momo Foods is set to further capitalize on its already impressive momentum. The funding will be structured through a combination of primary infusion and secondary purchase from existing investors, notably Indian Angel Network and Lighthouse Funds, with additional support from Oak Asset Management. This substantial influx of capital will empower Wow! Momo Foods to not only expand its ever-growing footprint but also drive its mission of transforming the Indian food space.

Wow! Momo: Defining the Momo Culture

Founded in August 2008, Wow! Momo has emerged as the go-to brand for mouthwatering momos, satisfying the cravings of millions of Indians across more than 35 cities. The brand has intelligently carved out its niche in a market with limited competition and capitalized on the immense popularity of this delectable cuisine. Boasting a remarkable 630 stores, which include small-format or kiosk stores situated in malls, technology parks, and hypermarkets, Wow! Momo Foods has cemented its position as the leading player in the momo industry.

 

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A Diverse Culinary Offering

While momos are at the heart of Wow! Momo Foods’ success, the brand has astutely diversified its product portfolio by introducing three sub-brands: Wow! China, Wow! Chicken, and Wow! Momo. This strategic move has allowed the company to cater to a wider range of taste preferences and tap into the diverse palate of Indian consumers.

Unleashing the Next Phase of Growth

The primary focus of this funding round is to fuel Wow! Momo Foods’ ambitious growth plans. The capital injection will be instrumental in expanding the brand’s presence to an additional 100 cities, bringing the total store count to a staggering 1,500 within the next three years. This aggressive growth strategy will undoubtedly solidify Wow! Momo Foods’ position as the undisputed leader in the momo industry across the length and breadth of India.

Research, Development, and FMCG Arm

A significant portion of the funding will be allocated to research and development, enabling Wow! Momo Foods to continuously innovate and delight its customers with new product offerings and flavors. Additionally, this investment will strengthen the brand’s distribution network, particularly for its fast-moving consumer goods (FMCG) arm. Currently, the brand sells packaged frozen ready-to-eat momos through retail stores and e-commerce platforms, and with the additional funds, they will be able to expand their FMCG offerings and enhance the customer experience.

 

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Igniting Investor Interest and Industry Growth

Wow! Momo Foods’ successful funding round is a testament to the renewed investor interest in India’s food services sector. Despite heightened competition and the entry of global brands into the market, investors have recognized the incredible potential of fast-food and quick-service restaurants. Research by ratings firm Icra predicts that between FY23 and FY25, these companies are expected to open around 2,300 new stores and invest approximately Rs 5,800 crore in capital expenditure. This surge in investment is fueled by increasing affordability and higher consumer demand for fast foods, making Wow! Momo Foods’ latest funding round even more remarkable.

Valuation and Ownership Structure

With an impressive post-money valuation exceeding Rs 2,400 crore, Wow! Momo Foods has raised a cumulative Rs 500 crore to date, excluding the current funding round. The founders, promoters, and dedicated workforce hold a commanding 45% ownership stake in the company, a clear testament to their vision and relentless pursuit of excellence.

 

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The Future of Wow! Momo Foods

As Wow! Momo Foods secures yet another historic funding round, the brand has undoubtedly solidified its position as the market leader in the world of momos. With an ambitious expansion plan, continuous innovation in product offerings, and unmatched customer experience, Wow! Momo Foods is poised for extraordinary growth and success in the years to come.

 

Source:indiatimes.com

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