Quick-service restaurant (QSR) chain Wow! Momo has raised Rs 75 crore (around $8.5 million) in its ongoing Series D funding round. The fresh capital comes from 360 ONE, with participation from Kyrush Investments. This new infusion aims to bolster the company’s expansion, strengthen its working capital, and support its growing presence in food-service and FMCG verticals.
Details of the Funding Round
- The board passed a resolution to issue 7,837 Series D6 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 95,699 per share to raise the Rs 75 crore.
- In the split of this investment, 360 ONE is investing about Rs 70 crore, while Kyrush Investments is contributing approximately Rs 4.99 crore.
- The fundraise is part of a larger Series D round in which Wow! Momo has already raised over Rs 650 crore cumulatively.
Performance, Valuation & Expansion Plans
- The post-money valuation is estimated at $315-320 million as per industry sources.
- Wow! Momo operates multiple brands (Wow! Momo, Wow! China, Wow! Chicken, etc.), and manages over 700 outlets across 70 cities in India. Restaurant India
- The company plans to scale up to 1,500 outlets in 100 cities over the coming three years. Also expanding its FMCG arm (packaged/frozen food etc.) and strengthening its HORECA (hotel/restaurant/café) presence.
Financials & Challenges
- Revenue: Wow! Momo’s operating revenue grew ~13% year-on-year to Rs 470 crore in FY24. Losses were reported at Rs 114 crore, remaining relatively stable.
- The fresh capital will help with working capital and general corporate needs, supporting expansion, and possibly improving unit economics. However, scaling outlets involves high fixed costs, supply chain complexity, and competition from other QSRs.
Why This Raise Matters
- Momentum in QSR & FMCG Combo
The mixed strategy of food‐outlet growth + FMCG helps diversify revenue streams and increase resilience. - Investor Confidence
Participation from 360 ONE and Kyrush signals belief in Wow! Momo’s business model, especially following past rounds and extension investments. - Outlet Expansion & Market Penetration
Objective to reach 100 cities + 1,500 outlets will demand capital, operational discipline, and good execution. This funding contributes to that roadmap. - Valuation Stability Amid Inflation & Cost Pressures
Maintaining a valuation of ~$315-320 million shows that despite cost pressures, competitive QSR market, and rising input costs, Wow! Momo is managing to sustain investor value.
What to Watch For
- Can Wow! Momo reduce losses or move toward profitability as it scales more outlets?
- Will the FMCG segment (frozen momos, etc.) contribute significantly to margins? Supply chain, quality control, cold chain etc. will be key.
- Execution risk in opening new outlets: site selection, real estate costs, staff, operations.
- Competitive pressures: from legacy chains, franchise QSRs, and other fast-casual food startups.
Conclusion
The Rs 75 crore raise in the ongoing Series D brings fresh firepower to Wow! Momo’s expansion ambitions. With strong investor backing, a clear roadmap, and established brand presence, the company is well-positioned to deepen its footprint in India’s food service landscape. If execution is solid, this phase could determine whether Wow! Momo becomes a leading national QSR brand with profitable operations.
