Wow! Momo, the renowned quick-service restaurant chain, has achieved a remarkable milestone by crossing the Rs 400 crore revenue threshold in FY23.
The Kolkata-based company witnessed an impressive 3.8X growth over the past two fiscal years, with its revenue soaring from Rs 106 crore in FY21 to Rs 413 crore in FY23.
According to its consolidated financial statements filed with the Registrar of Companies, Wow! Momo experienced a significant surge in revenue from operations, reaching Rs 413 crore in FY23 from Rs 220 crore in FY22, marking an 87.7% increase.
Established in 2008 by Sagar Daryani and Binod Homagai, Wow! Momo Foods operates three QSR brands—Wow Momo, Wow China, and Wow Chicken—across 35 cities with 630 outlets, directly employing 6,000 people.
The Tiger Global-backed firm generated revenue primarily from the sale of its products, supplemented by Rs 3 crore from interest on deposits and current investments, resulting in an overall income of Rs 416 crore in FY23.
Despite robust revenue growth, Wow! Momo witnessed a marginal increase in losses during FY23. Its total expenditure rose to Rs 471 crore from Rs 275 crore in FY22, driven by costs such as procurement of materials, rent, employee benefits, electricity, advertising, commissions, and other overheads.
However, the company effectively managed its expenditure, leading to a controlled increase in losses, which rose by only 13.1% to Rs 60.5 crore in FY23. Wow! Momo’s ROCE and EBITDA margins improved to -11% and -1.8% respectively, demonstrating its operational efficiency.
Having raised over $120 million to date, including a $51 million Series D round led by Khazanah, Wow! Momo boasts Tiger Global as its largest external stakeholder, followed by LightHouse, according to startup data intelligence platform TheKredible.
With current assets of Rs 131 crore, including cash and bank balances of Rs 54 crore, as of March 2023, Wow! Momo is poised for further growth. The company’s enterprise value to revenue multiple stands at 6.8X, as estimated by TheKredible.
Looking ahead, Wow! Momo aims to achieve a topline of Rs 650-700 crore in FY24, reflecting its strong market presence and growing acceptance. Despite challenges, the company remains agile and focused on delivering quality offerings, positioning itself for sustained success in the competitive fast-food industry.
