Fast food chain Wow! Momo today said it has raised Rs 44 crore in series B funding from venture capital firm Lighthouse Funds and angel investor group Indian Angel Network (IAN).
The latest round of funding led by Lighthouse Funds, which invests in mid-market consumer-driven firms, values the company at Rs 230 crore, the Kolkata-based firm said in a statement.
Besides, it also provided a highly profitable exit to the tune of Rs 10 crore to some of the IAN investors who decided to sell their shares partly/completely to Lighthouse, it added.
Commenting on the development, Co-founder and CEO, Wow! Momo, Sagar Daryani said: “Funds raised in the current round will be used for expansion and building of back-end infrastructure for the brand.”
The company said it has a long-term goal of doing an IPO by around six to seven years from now and a 1,000 Wow! Momo stores across India in the near future is a definite possibility.
It currently has 115 outlets in eight cities, including Kolkata, Delhi, Bengaluru and Pune.
Job portal Naukri.com founder Sanjeev Bhikchandani, who has been the lead investor in Wow! Momo on behalf of IAN since the earlier round in 2015, said the chain has sustained positive cash flows in geographies where they have achieved economies of scale.
“This company is now going national and might possibly even go overseas. At IAN, we recognise the market potential, talent, and the urge to disrupt the ecosystem,” Bhikchandani said.
Partner at Lighthouse Funds Sachin Bhartiya said Wow! Momo presents a great opportunity to participate in the fast- growing Indian food services space which is witnessing strong demand-side tailwinds.
Lighthouse Funds has earlier invested in brands like Fabindia, Cera Sanitaryware, Xseed Education, Bikaji Foods and Kama Ayurveda, among others.