Wow! Momo Foods, a restaurant chain, which owns Wow! Momo and Wow! China, has secured $23 million in a Series B funding round led by Tiger Global.
Post investment, Kolkata-based company is valued at $120 million (₹860 crore).
Wow! Momo Foods was started by Sagar Daryani and Binod Homaga in 2008 with an initial investment of ₹30,000. It, currently, has 282 outlets of Wow! Momo and 11 outlets of Wow! China across 15 cities.
The company said that it will be working toward a public offering soon.
“This partnership is indeed a big step forward in our endeavour to become an Indian origin QSR chain with an aim to go global in times to come. We will smartly use the capital infused to further scale our operations backed with disruptive research and development to reach out to a larger consumer base within the country,” said Sagar Daryani, chief executive and co-founder of Wow! Momo Foods.
The company further said that it is currently clocking a monthly run rate of over ₹15 crore and opening over 10 new stores every month. It did not announce its financials for the previous fiscal year.
It also added that it has been Ebitda positive since inception and growing at a compound annual growth rate of over 50 per cent for the last three years. Ebitda stands for earnings before interest, tax, depreciation and amortization.
“I am extremely confident that with our expertise backed by a strong leadership team at the helm, Wow! Momo is all set to become the face of Indian QSR on a global diaspora,” Scott Shleifer, partner and head, private equity, Tiger Global Management, said.
It is now looking to build a hybrid operating model through a mix of physical stores in prominent retail locations and cloud kitchens to cater to the growing delivery business.