QSR chain Wow! Momo raises Rs 125 cr from OAKS Asset for business expansion

Wow! Momo Foods, the quick service restaurant (QSR) chain backed by Tiger Global, has raised Rws 125 crore (around $15mn) in a funding round led by OAKS Asset Management.

The Series D funding will be in two tranches, with the second one in the works with another venture capital fund. The company said it will use the funds for expansion and to fortify its fast moving consumer goods (FMCG) arm.

 “You only grow when the ecosystem around you grows; even in such riotous times, good profitable, sustainable and scalable business models will always find right backing & that is the faith with which we started our first outlet in 2008,” said Sagar Daryani, chief executive officer (CEO) and co-founder of Wow! Momo Foods.

The company operates three brands—Wow! Momo, Wow! China and Wow! Chicken—and it operates in 21 cities and has over 480 outlets.

"We expect Wow! Momo to not only gain domestic market share in India but also to be the first global sized QSR company from India,” said Vishal Ootam, founder and CEO of OAKS Asset Management.

The company has a monthly revenue run rate of more than Rs 40 crore and it plans to double its growth by next mid-year. "The brand is poised to end the financial year with a topline of over Rs 450 crore as opposed to Rs 220 crore recorded in the last financial year," the firm said.

Plans to take the brand across all major cities and small places over the next 24 months are in the pipeline, said the QSR chain.