Impressive! Momo Foods, under the direction of Tree Line Investment Management, has raised approximately $ 17 million on a valuation of Rs 1,225 billion.
The company operates quick service brands Wow! Momo and Wow! China.
Tree Line is a Hong Kong and Singapore based mutual fund and has been an investor in listed Jubilant FoodWorks and Westlife Development, whose subsidiary Hardcastle Restaurants Pvt Ltd holds the master franchisee for the McDonald’s chain in the south and west.
“The reason we have them on board is because they are very strong in the public markets space,” co-founder Sagar Daryani told ET.
The company will consider going public in the next few years, he added.
“We wanted someone with the knowledge in this area. They are unique value creators, ”said Daryani.
ALSO READ TECH NEWSLETTER OF THE DAY
Over the past seven years, the ET Startup Awards (ETSA) have grown from strength to strength and have become by far the most prestigious award for entrepreneurs.
The IAN (Indian Angel Network) Fund and the existing investor Lighthouse Funds also took part in the round.
The fresh capital will enable the brand to strengthen its newly launched Fast Moving Consumer Goods business, drive the expansion of its quick service restaurant and cloud kitchen brands, and bring two more brands to market.
The company will open nearly 150 stores over the next year, Daryani said, as it has 2-fold growth in mind.
The company is profitable and has sales of Rs 20 crore – Rs 22 crore per month.
It is planned to increase this to 45 billion rupees per month by next August.
Founded in August 2008 by Daryani and Binod Homagai, the company operates 350 Wow! Momo and over 50 Wow! China.
Over the next year, the company plans to add 50 cloud kitchens.
“When we came up with Wow! Momo & later Wow! We were confident about the market potential in China. We had a clear roadmap for strengthening our restaurant business, followed by a foray into the FMCG space, ”said Daryani, who is also CEO.
Earlier this quarter, wow! Momo took a foray into the FMCG space when it launched ready-to-eat momos.
The company increased its online delivery business sevenfold in August to 700,000 orders per month, it said.
Zaheer Sitabkhan, Founder of Tree Line Investment Management, said, “With India emerging quickly from Covid-19, we are excited about its growth plans in both the QSR and Ready-to-Eat categories. We look forward to accompanying Wow Momos on its growth path and wish you all the best for the next chapter in your story. ”