Private equity fund Lighthouse Funds is looking to completely exit Wow! Momo Foods, according to two people familiar with the matter.
The QSR chain is looking to raise funds of around $100 million.
Lighthouse had initially invested in the company in 2017 with Indian Angel Network (IAN), when it raised Rs 44 crore at a valuation of Rs 230 crore.
In January 2024, IAN fully exited the QSR company and Lighthouse funds sold their stake partially when Wow! Momo raised around Rs 350 crore from Malaysian sovereign wealth fund Khazanah Nasional Berhad.
According to data intelligence firm Tracxn, Lighthouse currently holds 5.9% stake in Wow! Momo. In total, the fund has put in around Rs 60 crore in the company.
Now, with the current stake sale at a valuation of around Rs 2,400 crore, Lighthouse’s total returns from the investment would be close to Rs 300 crore, according to one of the persons quoted above.
The company’s largest shareholder is its co-founder Sagar Daryani, who holds around 18% stake. It is followed by 15.2% held by the other co-founder Binod Homagai.
The company also has backing from Tiger Global and Z3Partners.
Both Wow! Momo and Lighthouse Funds did not reply to FE’s queries till time of going to press.
Wow! Momo currently operates under four brands — Wow! Momo, Wow! China, Wow! Chicken, and Wow! Kulfi.
It is betting on rapid expansion, aiming to add 200-250 more stores next year to its existing network of 680 outlets.
The company is also growing its FMCG business, with frozen momos generating Rs 5 crore in monthly sales, mainly through quick commerce platforms.
In FY24, Wow! Momo’s revenue from operations grew around 13% to Rs 470 crore from Rs 413 crore in FY23. Its losses remained flat at Rs 114 crore in FY24.
This was mainly due to a 12% increase in expenses to Rs 593 crore, on the back of expansion.
In FY25, the company is reportedly aiming to report a revenue of around Rs 650 crore. It also plans to go public in 2027.