Wow! Momo sees valuation jump, to raise up to Rs 50 cr

One of the most successful city based startups Wow! Momo will raise its next round of equity funding at an enterprise valuation of around Rs 300 crore, a 300 per cent jump in just 18 months.
"We are not looking at dilution of more than 15-18 per cent stake in this round of equity funding in which we are aiming to raise Rs 40-50 crore by March-April and have already engaged KPMG as advisor," Wow! Momo co-founder and CEO Sagar J Daryani told PTI.
Wow! Momo is expecting a valuation of around Rs 300 crore compared to the first round in which it raised Rs 10 crore offering 10 per cent equity stake 18 months ago.

"We are going for the second round of equity funding to raise Rs 40-50 crore to fuel our aggressive expansion across the country," Daryani said adding, "We are primarily looking at VCs and PEs who will also bring in knowledge for future scalability."
Sanjeev Bikhchandani of naukri.Com and 99acres, who were important investors in Wow! Momo among others, in the initial round, had said the product was capable to be introduced overseas and become the McDonald's of India.
Wow! Momo has been working on exporting frozen momos to the US, but will continue to retain the identity of offering 'fresh momos' from the chain of 101 retail stores across the country, Daryani said.

He said with fresh funding, it can add 50 stores year on year over the next few years.

Wow! Momo has invested heavily in revamping its stores and expansion across the country.
The brand is currently serving little "pockets of delights" in eight cities which include Kolkata and suburbs, Delhi, Gurgaon, Noida, Bangalore, Chennai, Kochi and Pune.
Appealing to various tastes of the people, today the startup sells more than two lakh momos every day.
The brand intends to package its specially prepared momo sauces and make them available across the shelves.