The well-known quick-service restaurant (QSR) chain, Wow! Momo, which is headquartered in Kolkata, experienced a significant increase in its operational revenue. In the financial year 2021-22, the company’s revenue surged by more than two times, reaching INR 219.8 Crores. This marked a substantial rise from its previous fiscal year’s revenue of INR 106 Crores.
The startup derives its revenue from the sale of food products via its restaurant establishments, which are located in more than 25 cities across India. Alongside its primary brand, Wow! Momo, the startup manages two additional brands – Wow! China and Wow! Chicken.
In the fiscal year 2021-22, the startup’s overall earnings, encompassing supplementary income, amounted to INR 222.1 Crores, showcasing a contrast to the INR 108.4 Crores recorded in the fiscal year 2020-21.
Despite the twofold increase in the top-line figure, Wow! Momo witnessed a more modest growth in its expenditures. As a result, the startup’s net loss decreased by 10%, reaching INR 53.4 Crores in the financial year 2021-22, compared to INR 59.4 Crores in the preceding fiscal year.
Total expenses experienced a 62% increase, rising to INR 274.5 Crores during FY22 from the FY21 figure of INR 169.1 Crores. Notably, the cost of materials consumed saw a substantial 95% surge, climbing from INR 48.7 Crores in FY21 to INR 95.3 Crores, thereby constituting the most significant component of expenses for the reviewed period.
Employee benefit expenditures surged by 76% to reach INR 51.3 Crores in the fiscal year 2021-22, displaying a substantial increase from the INR 29.1 Crores recorded in the previous fiscal year. These expenses encompass a range of components including employee wages, contributions to the provident fund (PF), gratuity, and various other welfare benefits for employees. According to information available on LinkedIn, Wow! Momo currently maintains a workforce of more than 1,000 employees.
In the fiscal year 2021-22, the startup allocated INR 29.6 Crores towards rental expenses, reflecting a substantial increase of 105% compared to the INR 14.4 Crores expended in the preceding fiscal year.
Established in 2008 by Binod Kumar Homagai, Sagar Daryani, and Shah Miftaur Rahman, Wow! Momo boasts a network of more than 500 outlets spanning across 25 Indian cities. In March of the current year, the startup unveiled its decision to consolidate its three brands, namely Wow! Momo, Wow! Chicken, and Wow! China, into a unified brand known as Wow! Eats.
In the previous year, the startup secured a funding of INR 125 Crores from OAKS Asset Management during its Series D funding round, valuing the company at INR 2,125 Crores ($257 million). Prior to this, Wow! Momo had obtained $15 million in its Series C funding round from Tree Line Management. The company is supported by prominent investors such as Tiger Global and Lighthouse.