Indian quick service restaurant (QSR) chain Wow! Momo is set to secure a bridge funding of Rs1.3bn to Rs1.5bn ($15-17m), led by Haldiram’s Kamal Agrawal and Malaysian sovereign wealth fund Khazanah Nasional, reported The Economic Times.
The funding, structured through convertible notes, precedes a larger fundraise aimed for the October-December quarter of 2025.
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The QSR chain, which last raised Rs3.5bn in January 2024 at a valuation of Rs24bn, is preparing to raise an additional $75-80m in the forthcoming round.
The company has engaged investment bankers to manage this significant capital raise.
In this interim round, alongside Agrawal and Khazanah, various family offices and high-net-worth individuals are anticipated to invest.
Agrawal’s association with Haldiram’s Nagpur faction, now merged with the Delhi entity to form Haldiram Snacks Food.
Haldiram Snacks Food recently secured investment at an impressive $10bn valuation.
Despite requests for comments, Wow! Momo cofounder Sagar Daryani and representatives from Khazanah Nasional have not provided responses. Agrawal also remained unavailable for remarks on the funding.
Sources familiar with Wow! Momo’s strategy reveal that the company is expanding its restaurant network and fast-moving consumer goods (FMCG) offerings.
Currently, the chain operates multiple brands, including Wow! Chicken, Wow! China and Wow! Kulfi.
For the fiscal year 2024, Wow! Momo reported revenues of Rs4.8bn and a net loss of Rs1.14bn.
The company’s growth strategy includes capitalising on the quick commerce trend by introducing packaged food products.
The investment comes at a time when food delivery platforms like Zomato and Swiggy are experiencing a slowdown in their core delivery businesses.
Daryani said: “We sell frozen momos through quick commerce and modern trade channels, generating Rs50m in monthly sales. Of this, 52% comes from quick commerce.
“We’ve also launched Wow! Biryani on Zepto and are rolling out cup noodles featuring our bestsellers from Wow! China.”
