wow momo

Source: Inc42

Kolkata, Popular quick-service restaurant chain Wow! Momo has raised ₹85 crore (almost $9.9 million) in debt financing from Stride Ventures. The company will use the proceeds to grow its dine-in restaurant business and enter the packaged Food segment / FMCG (Fast-Moving Consumer Goods)

Wow! Momo, which was started in 2008 by Sagar Daryani, Binod Kumar Homagai, and Shah Miftaur Rahman, one of India’s fastest growing QSR brands, has more than 630 outlets across 35+ cities today. With the new round of funds, the company aims to open over 100 cities in the next 3 years.

The company has been increasing their business model in new directions. They’ve launched other food brands with Wow! like Wow! China; Wow! Chicken; and Wow! Kulfi! The company also entered the FMCG food category with frozen momos – selling the products via quick commerce and store locations.

Financial Performance

Based on current financial data, Wow! Momo’s revenues increased by 13.83% in the financial year 2023-24 (FY24) to ₹470 crore, compared to ₹412.9 crore in FY23. The net loss remained nearly the same, increasing from ₹113.8 crore in FY23 to ₹114.4 crore in FY24.

Usage of the Funds

The ₹85 crore raised from Stride Ventures will help Wow! Momo:

  • Open more dine-in restaurants across the country
  • Grow the frozen food and FMCG product lines
  • Enhance its delivery, logistics and supply chain
  • Strengthen both online sales and offline sales

This won’t be the company’s first round of funding. Wow! Momo has previously raised funds from Tiger Global, Khazanah Nasional and Info Edge. These funds have allowed the company to scale and establish a presence across India.

What Lies Ahead 

Wow! Momo is also gearing up for a bigger funding round later this year. The company is aiming to raise ₹600-700 crore (~$75-80 million) of new equity to support more long-term growth and product development. 

With solid backing from investors and a well-defined growth plan, Wow! Momo is now looking to expand into not just a restaurant brand but also a significant player in India’s ready-to-eat and packaged food sector.

Given the increasing demand for food that is fun, fast, and accessible, Wow! Momo’s foray into the FMCG space is in line with changing consumer habits.Wow! Momo is changing the game as it continues to innovate with its new formats and products, and it is building itself out as a food solutions company.