It’s a Big Deal Episode #13
Welcome to It’s-a-Big-Deal blog, where we dissect top private market deals using the remarkable PrivateCircle Research dashboard.
Today we’re exploring Wow! Momo – a beloved quick-service restaurant in India, which recently secured a staggering $49 million funding round from Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund.
Watch the Episode 13 available on YouTube now.
Understanding Sovereign Wealth Funds
Sovereign wealth funds, like Khazanah Nasional Berhad, are investment vehicles owned by a country’s government.
They typically derive their funds from revenues generated by natural resources or foreign exchange reserves.
About Wow! Momo: A Culinary Sensation
As the name suggests, Wow! Momo specializes in a variety of mouthwatering momos. Their offerings span across dine-in, delivery, and takeaway formats, with 400 outlets nationwide. Additionally, they operate 130 Wow! China and 135 Wow! Chicken outlets across 27 Indian cities.
Notably, global investors like Tiger Global have backed this Indian QSR (Quick Service Restaurant).
Exploring Wow! Momo’s Funding Journey
Wow! Momo has a history of successful fundraising, with its latest Series D round marking a significant milestone. Prior to this, the company raised funds through various rounds, including a debt round in Aug 2023.
Overall, it boasts 17 funding deals, accumulating a total funding of approximately $74 million. The recent Series D round is the largest to date, signaling potential growth or strategic shifts in the company’s focus.
Analyzing Wow! Momo’s Financial Performance
While Wow! Momo has demonstrated impressive revenue growth, its financial health warrants scrutiny. In FY22, the company reported total revenue of ₹222 cr, with a remarkable 105% year-on-year growth rate.
However, it remains unprofitable, with losses increasing substantially in FY21. The company’s expenditure primarily centers around raw materials, employee wages, and rent expenses, which are typical for QSR operations.
Competitive Landscape
Wow! Momo operates in a fiercely competitive market alongside popular food destinations like Chai Point and Biryani by Kilo.
Despite stiff competition, it ranks sixth in revenue among its peers, showcasing strong market positioning and growth potential.
Conclusion
With substantial funding and a growing market presence, Wow! Momo is poised for expansion. However, effective capital utilization and adaptability to market dynamics will be critical for its long-term success.
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Disclaimer: The content provided in this article is for educational and informational purposes only and does not constitute professional financial advice. The opinions expressed herein are those of the author and do not necessarily reflect the views of the company / organization.