Wow!Momo to hit UK, US with Rs 44 cr funding

Wow!Momo ready to hit overseas market now…..

Kolkata based Wow! Momo, the country's largest chain of momos with over 100 outlets across eight cities has raised Rs 44 crore as Series B funding from Lighthouse Funds and Indian Angel Network at a Rs 230 crore valuation. The fund raised also provides a highly profitable exit to some India Angel Network (IAN) investors (whosoever elected to sell their earlier investment) with an IRR of nearly 50 per cent in less than 18 months.    

The deal has been led by Lighthouse Funds, which largely focuses on mid-market consumer driven businesses.  IAN, the world’s largest angel network exercised their pre-emptive right in this round. Sanjeev Bhikchandani, founder of Naukri.com, has been the lead Investor in Wow! Momo on behalf of IAN since the earlier round in 2015.

Founded by two college friends, Sagar Jagdish Daryani and Binod Kumar Homagai with an initial investment of Rs 30,000 and just one kiosk in Kolkata, Wow! Momo is now not just a trend setter in the momo market but has actually created a new line into the fast growing Quick Service Restaurant industry. Moreover, the duo has successfully built an Indian food brand which dreams of going abroad soon.

Speaking to I Am An Entrepreneur on this occasion, Daryani says, “We had already scaled to 100 outlets with our internal accruals and angel round of Rs 10 crore. With a view to take the company to 500+ stores, another round of fresh funding was required for the capital expansion and entering new cities. While on asked about the total corpus of external funding, Homagai, informs, “We took Rs 10 crores from IAN in 2015 and have now raised Rs 44 crore from Lighthouse and IAN. We have diluted about 23 per cent shares till date.”

About the utilisation of the fresh round of funding, both agreed that the funds would be utilised solely for expansion of new stores and entering new cities. “We shall start exporting momos to the UK and US markets shortly,” they added.

According to Shah Miftaur Rahman, the newest energy force to be added to Wow! Momo, the current round of fund raising takes care of the capital expansion plans of the company for the next two years. However, the company may require additional funds for acquisition of new business verticals and properties.    

Initially set up with a modest initial investment, Wow! Momo reached a turnover of over Rs 2 crore/month before raising their first round of funds in August, 2015 - a Rs 100 crore valuation from The Indian Angel Network, led by Sanjeev Bhikchandani. Experts say this is one of the best valuations received by an Indian QSR Chain in its very first round of funding. Currently they are clocking a turnover of over Rs 5 crore a month and have recruited over 800 employees.

Wow! Momo operates out of kiosks, Food Court Quick Service Outlets, Shop – in Shop Models, and High Street Quick Service Restaurants. The stores are largely company owned and company operated. The brand has a long-term goal of doing an IPO (initial Public Offering) by around six to seven years from now. The team feels a 1000 Wow! Momo stores PAN India in the near future is a definite possibility.    

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