Kolkata based QSR chain raises more than 110 Crores from Singapore based Investment firm Tree Line to expand their business
Quick service restaurant chain Wow! Momo announced a $15 million Series C fundraising round headed by Tree Line Investment Management, bringing its worth to more than Rs 1,225 crore ($165 million). The fundraising round was also attended by IAN Fund and current investor Lighthouse Funds.
The new funds will be used towards the company's recently launched FMCG business—ready-to-eat momos—as well as the growth of its QSR cloud kitchen brands and the introduction of other verticals that will be revealed soon.
Wow! was first introduced in 2008. Momo Foods owns and runs two quick-service restaurants (QSRs)—Wow! Momo and Wow! China.
It now runs 350 Wow! Momo locations and more than 50 Wow! China locations, with plans to open over 150 stores and 50 cloud kitchens in the coming year
Earlier this year, Wow!Momo entered the FMCG market when it introduced ready-to-eat momos, which are now available only on BigBasket. These goods, according to the firm, will be accessible on other e-commerce sites within six months.
Wow! In October of last year, Wow! Momo secured $6.1 million in a debt round of funding from Chennai-based Anicut Capital, mostly to settle Avendus Finance's existing debt, after the business had raised $5 million in debt in 2018.
Tiger Global also led a $23 million round in Wow! Momo in 2019, which was considered an odd investment for the New York-based hedge fund at the time. However, in an uncommon move for Tiger Global, Wow! Momo is one of the few firms that the hedge fund has not backed a second time following its first investment.
Other examples of Tiger Global not participating in follow-on rounds include Vedantu, MyGate, Roposo, Ninjacart, and INDMoney.
While Wow! Momo has yet to publish its annual financial accounts for FY21, the firm generated operational revenue of Rs 164.98 crore in FY20, up from Rs 119.53 crore the previous fiscal year. During the time, it increased its total spending by 44.6 percent to Rs 170.84 crore. The firm was on the verge of being profitable, with a loss of only Rs 2.39 crore in FY20.
To know more about Cloud Kitchens, please click on the Newzpepper article link below
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