Fast-food chain Wow Momo Foods plans to launch an initial public offering (IPO) within the next two years, according to its CEO, Sagar Daryani. The͏͏ popular͏͏ dumpling͏͏ brand͏͏ aims͏͏ to͏͏ mirror͏͏ the͏͏ swift͏͏ growth͏͏ of͏͏ Domino’s͏͏ Pizza͏͏ in͏͏ the͏͏ world’s͏͏ most͏͏ populous͏͏ nation,͏͏ as͏͏ reported͏͏ by͏͏ Reuters.
Rapid͏͏ Growth͏͏ in͏͏ India’s͏͏ Fast-Food͏͏ Sector:
India’s͏͏ USD͏͏ 5͏͏ billion͏͏ fast-food͏͏ industry͏͏ has͏͏ witnessed͏͏ remarkable͏͏ expansion,͏͏ spurred͏͏ by͏͏ a͏͏ surge͏͏ in͏͏ demand͏͏ from͏͏ low-͏͏ and͏͏ middle-income͏͏ families.
Valued͏͏ at͏͏ INR͏͏ 25͏͏ billion͏͏ (USD͏͏ 299.33͏͏ million)͏͏ and͏͏ boasting͏͏ a͏͏ network͏͏ of͏͏ 650͏͏ stores,͏͏ Wow͏͏ Momo͏͏ aims͏͏ to͏͏ be͏͏ the͏͏ first͏͏ major͏͏ local͏͏ fast-food͏͏ chain͏͏ to͏͏ go͏͏ public,͏͏ capitalising͏͏ on͏͏ this͏͏ shift͏͏ in͏͏ consumer͏͏ behaviour.
Revenue͏͏ Growth͏͏ Targets:
Tiger͏͏ Global-backed͏͏ Wow͏͏ Momo,͏͏ which͏͏ reported͏͏ revenue͏͏ of͏͏ nearly͏͏ INR͏͏ 4.8͏͏ billion͏͏ (USD͏͏ 57.47͏͏ million)͏͏ for͏͏ the͏͏ fiscal͏͏ year͏͏ ending͏͏ in͏͏ March,͏͏ aims͏͏ to͏͏ double͏͏ its͏͏ revenue͏͏ to͏͏ INR͏͏ 10͏͏ billion͏͏ over͏͏ the͏͏ next͏͏ 30͏͏ months,͏͏ according͏͏ to͏͏ co-founder͏͏ and͏͏ CEO͏͏ Sagar͏͏ Daryani.
“The͏͏ public͏͏ markets͏͏ are͏͏ experiencing͏͏ significant͏͏ growth…͏͏ The͏͏ IPO͏͏ of͏͏ a͏͏ homegrown͏͏ fast-food͏͏ chain͏͏ in͏͏ India͏͏ will͏͏ transform͏͏ the͏͏ landscape͏͏ for͏͏ the͏͏ fast-food͏͏ industry͏͏ in͏͏ the͏͏ country,”͏͏ Daryani͏͏ stated.
Continue͏͏ Exploring:͏͏ Wow!͏͏ Momo diversifies͏͏ portfolio,͏͏ enters͏͏ dessert͏͏ segment͏͏ with͏͏ Wow!͏͏ Kulfi͏͏ launch͏͏ in͏͏ Kolkata
Thriving͏͏ Public͏͏ Markets:
India’s͏͏ booming͏͏ stock͏͏ market͏͏ has͏͏ reached͏͏ record͏͏ highs͏͏ over͏͏ 50͏͏ times͏͏ this͏͏ year,͏͏ with͏͏ nearly͏͏ 200͏͏ companies,͏͏ including͏͏ e-scooter͏͏ manufacturer͏͏ Ola͏͏ Electric͏͏ and͏͏ telecom͏͏ operator͏͏ Bharti͏͏ Hexacom,͏͏ raising͏͏ billions.
In͏͏ the͏͏ restaurant͏͏ sector,͏͏ franchisees͏͏ of͏͏ Western͏͏ brands͏͏ such͏͏ as͏͏ KFC,͏͏ McDonald’s,͏͏ Burger͏͏ King,͏͏ and͏͏ Domino’s͏͏ have͏͏ entered͏͏ the͏͏ public͏͏ market͏͏ over͏͏ the͏͏ past͏͏ decade.͏͏ One͏͏ of͏͏ the͏͏ latest͏͏ local͏͏ listings͏͏ was͏͏ Barbeque-Nation͏͏ Hospitality,͏͏ which͏͏ went͏͏ public͏͏ three͏͏ years͏͏ ago.
Shares͏͏ of͏͏ Barbeque-Nation,͏͏ based͏͏ in͏͏ Bengaluru,͏͏ Karnataka,͏͏ have͏͏ risen͏͏ nearly͏͏ 28%͏͏ from͏͏ their͏͏ IPO͏͏ price,͏͏ despite͏͏ facing͏͏ challenges͏͏ with͏͏ foot͏͏ traffic͏͏ amid͏͏ inflation-weary͏͏ consumers.
Daryani͏͏ expressed͏͏ his͏͏ intention͏͏ to͏͏ emulate͏͏ the͏͏ success͏͏ of͏͏ Jubilant͏͏ FoodWorks,͏͏ which͏͏ has͏͏ grown͏͏ Domino’s͏͏ from͏͏ a͏͏ single͏͏ store͏͏ in͏͏ India͏͏ in͏͏ 1996͏͏ to͏͏ more͏͏ than͏͏ 1,800͏͏ outlets.
Wow͏͏ Momo,͏͏ which͏͏ sells͏͏ savoury͏͏ dumplings͏͏ priced͏͏ between͏͏ INR͏͏ 109-369͏͏ (USD͏͏ 1.31-$4.42)͏͏ per͏͏ serving,͏͏ aims͏͏ to͏͏ expand͏͏ its͏͏ store͏͏ count͏͏ to͏͏ 1,000͏͏ and͏͏ achieve͏͏ profitability͏͏ based͏͏ on͏͏ a͏͏ core͏͏ earnings͏͏ metric͏͏ within͏͏ the͏͏ next͏͏ two͏͏ years.
Positive͏͏ Sales͏͏ Momentum:
Although͏͏ the͏͏ company͏͏ saw͏͏ a͏͏ decline͏͏ in͏͏ same-store͏͏ sales͏͏ from͏͏ October͏͏ to͏͏ May,͏͏ reflecting͏͏ a͏͏ wider͏͏ slowdown͏͏ in͏͏ the͏͏ Indian͏͏ fast-food͏͏ sector,͏͏ sales͏͏ have͏͏ since͏͏ rebounded,͏͏ becoming͏͏ positive͏͏ from͏͏ June͏͏ to͏͏ September,͏͏ Daryani͏͏ noted.
