NEW DELHI: India-based fast food chain Wow! Momo has sold a 15 per cent stake to Malaysia's sovereign wealth fund Khazanah Nasional Bhd for 3.5 billion rupees (US$42 million), Indian media reported on Tuesday.

It raised another 600 million rupees (US$7.2 million) from Indian investment firm, OAKS Asset Management (RM1=US$4.692).

The fast food chain plans to use the funds for expansion as well as to provide an exit route to early-stage investors.

Wow! Momo co-founder and chief executive officer Sagar Daryani reportedly said he was thrilled that the company's early-stage investors were exiting with a generous return on their investment.

"Simultaneously, it is a matter of great pride that a marquee sovereign fund such as Khazanah is partnering with us for the next phase of growth," he said.

The Kolkata-based company was founded in 2008 and operates about 630 outlets and kiosks in 35 cities under different brands. - Bernama