Kolkata: City-based fast food chain Wow! Momo is planning to tap the export market with frozen momos. The founder of Wow! Momo, Sagar Daryani, told TOI that they have decided to venture into Europe and the US following creating a strong footprint in the domestic market.
According to him, Wow! Momo has decided to set a momo plant at the Kasba Industrial Estate for exporting frozen momo to the UK and the US initially. The firm is investing Rs 10 crore for the project.
The 8-year-old momo chain which has grown manifold in the last three years is also planning to open outlets in Mumbai and Bhubaneswar. It now has 117 outlets in eight cities, including Kolkata. “We are planning to add 100 outlets in the next two years. Every year, we shall add 50 outlets across India,” he added.
Daryani indicated that its plan to go for an initial public offering (IPO) is also on track. Elaborating the recent round of funding, the founder added that Lighthouse Funds along with Indian Angel Network (IAN) and Sanjiv Bikchandani, the founder of Naukri.com, have picked up 16% stake in the momo giant. Earlier, Wow! Momo had diluted 10% stake to same set of investors.
The momo chain has raised Rs 44 crore as Series B funding from these investors at a valuation of Rs 230 crore. The fund-raise also provides a highly profitable exit to some IAN investors (whosoever elected to sell their earlier investment) with an IRR (internal rate of return) of nearly 50% in less than 18 months.
The deal has been led by Lighthouse Funds, which largely focuses on mid-market consumer-driven businesses. The fund has invested in brands like Fabindia, Cera Sanitaryware, Xseed Education, Bikaji Foods, Kama Ayurveda to name a few. IAN, the world’s largest angel network, exercised their pre-emptive right in this round. Sanjeev Bhikchandani has been the lead investor in Wow! Momo on behalf of IAN since 2015.
Bhikchandani said, “The team at Wow! Momo has executed well. They have sustained positive cash flows in geographies where they achieved economies of scale.”
(As published in times of india on Wed, June 14 2017 06.30 AM IST)