Mumbai: Wow! Momo has appointed Avendus to raise $80-100 million in a mix of primary and secondary shares with investor Lighthouse Funds completely exiting its stake in the quick service restaurant chain, two people familiar with the matter told Mint.
“Lighthouse has been invested for a long time and will completely exit their stake with this round,” one of the people said, adding that Avendus is running the mandate and will help the company raise money from new and existing investors later this year.
Avendus, Wow! Momo and Lighthouse Funds did not immediately respond to Mint’s request for a comment.
Lighthouse’s exit will come nearly eight years after the firm made its initial investment in Wow! Momo’s series B round, in which the company raised ₹44 crore alongside Indian Angel Network in June 2017. At the time, the company was valued at ₹230 crore.
The company is also in the midst of raising a ₹130-150 crore bridge round led by Kamal Agrawal, part of the promoter family behind India’s leading snacking brand Haldiram, and Malaysian sovereign wealth fund Khazanah Nasional Berhad, according to a report by The Economic Times earlier today.
The company is also in discussions with HNIs (high net worth individuals) and other existing investors for this round, the second person cited above said.
Over the years, Lighthouse has partially exited its stake in the company, which is currently valued at over ₹2,400 crore as per data provided by market intelligence provider Tracxn. Last year, Wow! Momo raised ₹70 crore in its extended series D funding round led by Z3 Partners after it secured ₹410 crore from Malaysian sovereign wealth fund Khazanah and Oaks Asset Management.
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Launched in 2008 by Sagar Daryani and Binod Homagai, the company operates over 680 outlets of Wow! Momo, Wow! China, Wow! Chicken and the newly launched Wow! Kulfi spread across 60 cities.
Earlier this year, Daryani highlighted that the company’s newer verticals, like Kulfi and the FMCG business, are expected to be a huge contributor to its overall business. The company aims to enter more than 100 cities through over 1500 stores over the next four years.
In FY24, its revenue from operations grew to ₹470 crore from ₹413 crore a year earlier. The company’s losses stood at ₹114 crore, a marginal increase from FY23.
