William Bissell, the managing director of Fabindia, spent Rs 3 crore, propelling Wow! Momo was valued at Rs 300 crore.
Image@credit-Start Urban
It’s extremely unlikely that you haven’t heard of Wow! Momo in your life or have you ever ordered it on Swiggy or Zomato? Who would have believed that momos could be a multi-billion-dollar business in India, a country with such a complex and diverse economy, particularly when it comes to food? Today, we’ll tell you about the people who contributed to Wow!’s success. Momos- the momo wallas who entirely destroyed the momo-selling market-Sagar and Binod’s entrepreneurial adventure serves as an inspiration to dream big and turn passions into reality.
Wow! The Momos success story is about two people who have a passion for food and various culinary delights, and how they turned their passion for Momos into a profitable business. The dynamic team behind Wow! Momo, Sagar Daryani, and Binod Kumar Homagai embarked on an astonishing adventure that began with a modest shop in Kolkata. Today, their brand has grown to become India’s fastest-growing quick-service restaurant (QSR) chain, with a goal of competing with global behemoths such as Domino’s and McDonald’s. Let us now go into their incredible narrative of hardship and triumph.
The brainchild’s creators
Image@credit- The Financial Express
Wow! Momo Foods Pvt. Ltd. CEO and Co-Founder Sagar Daryani and Co-Founder and COO Binod Homagai have worked relentlessly to shape the company’s success. Sagar’s passion is brand building, and he envisions an India with 100% employment. Wow! Momo presently employs approximately 1800 people, including people with disabilities and those connected to various NGOs through the company’s relationships.
During their undergraduate studies at St. Xavier’s College, Sagar Daryani and Binod Kumar Homagai initially met. They wanted to try their luck in the company and make something out of their enthusiasm even before they graduated. At the age of 21, they ventured into the momo company with an initial investment of Rs 30,000 obtained from Sagar’s father. Binod took over production and quality control while Sagar concentrated on brand promotion, marketing, and retail operations. Their team expanded with the additions of Shah Miftaur Rahman and Muralikrishnan, who brought financial and marketing knowledge, respectively.
Beginning steps
Binod and Sagar developed a profound affection for momos in college, in addition to attending classes together. Binod’s liking for the meal stemmed from his Nepalese heritage, where momos are thought to have originated. Sagar, on the other hand, developed a fondness for momos after regularly sampling the fares of a momo-seller outside his school.
They pondered launching a bakery in Mumbai at first, but eventually opted to go into the momo industry because Binod knew how to manufacture them. Binod immediately supported the concept when he offered it to Sagar. It was a fantastic opportunity for them to turn their favorite meal into a profitable business strategy.
However, fate put their resolve to the test. During college campus placements, both were offered incredibly lucrative employment with an international bank. The salary packages were more than three lakh rupees per year, which was a large sum at the time.
Despite the attractive job offers, Sagar and Binod took a different route. They both became directors in their momo firm, with equal shares. They also gave IAN (Indian Angel Network) a 10% ownership and established a 10% ESOP (Employee Stock Ownership Plan) pool for their employees.
Who would have guessed that a little Momo store could reach such incredible success? In 2008, Sagar and Binod developed a culinary empire that earns a remarkable monthly revenue of Rs 40 to Rs 45 crores with an initial investment of only Rs 30,000. Wow! Momo began with the 666 kiosk, which sold steamed momos. They began their culinary odyssey with a single table and two part-time chefs. Wow! Momo has captivated the imagination of food enthusiasts all around the world, growing from a little shop in Kolkata to 477 stores across India. The brand’s tagline, “Momo on the move,” accurately represents their ongoing expansion and innovation, with their Desi Chinese offerings at Wow! China and the latest release of Wow! Chicken.
Wow! From a tiny 200-square-foot kitchen that relied on raw material credit from a local grocery store, Wow! Momo gradually increased its territory.
Wow! With only one table and two part-time chefs earning a pittance, Momo’s first kitchen began to take shape. Despite the obstacles, Sagar and Binod were adamant about creating an experience that would leave their customers with only one word: WOW!
Their dedication and hard work paid off. Wow! In December 2021! Momo has expanded to 425 stores spread over 19 cities in India. Wow! Momo, Wow! China, and Wow! Chicken, which will debut in December 2021, is the company’s three brands. Wow! With ambitions to compete with industry titans such as Domino’s and McDonald‘s, Wow! In the future years, Momo hopes to go public and build a global footprint.
Success
Wow! Momo‘s success drew major investment from well-known businesses. Lighthouse Funds and the Indian Angel Network invested Rs 44 crore in the company in June 2017. A year later, William Bissell, Fabindia’s managing director, contributed Rs 3 crore, boosting Wow! Momo to a worth of Rs 300 crore. Tiger Global Management’s investment of Rs 130 crore in September 2019 increased the company’s worth to Rs 860 crore, allowing for the opening of new locations in commercial centers.
The COVID-19 epidemic posed its own set of difficulties, but Wow! Momo grasped the chance to form a strategic alliance with Café Coffee Day. They shared outlet sites, prices, and revenue as a result of this collaboration, proving their adaptability and durability.
Wow! Momo illustrates the strength of enthusiasm and determination, from its humble beginnings to its extraordinary rise. Wow! now has over 300 locations in 17 cities. Momo’s varied assortment of momos and other scrumptious items continues to surprise customers. Their passion for success and love for what they do remain unwavering as they grow their footprint and win hearts across the country.
