The QSR chain Wow! Momo achieved a remarkable milestone as its revenue surged past the INR 400 Cr threshold in the fiscal year ended on March 31, 2023. The Kolkata-based startup, renowned for its delectable momos, experienced a staggering 88% growth in operating revenue, soaring from INR 219.8 Cr in the preceding fiscal year to INR 412.9 Cr in FY23.
The boost in revenue can be credited to the startup’s expansion of its store network and the introduction of new brands like Wow! Chicken, Wow! China, and China Belly.
Taking into account other sources of revenue, the total revenue surged by 87.3% to reach INR 416.3 Cr in the fiscal year under consideration, up from INR 222.19 Cr in FY22.
In contrast, the net loss expanded by 13% to INR 60.5 Cr in the fiscal year under consideration, up from INR 53.4 Cr in FY22.
Continue Exploring: Wow! Momo diversifies portfolio, enters dessert segment with Wow! Kulfi launch in Kolkata
The company’s total expenditure soared by 72% to INR 470.8 Cr in FY23, compared to INR 274.5 Cr in the previous fiscal year.
During the year under review, the startup allocated INR 159.9 Cr towards procuring raw materials, marking a 68% increase from the INR 95.3 Cr spent in FY22.
The employee cost surged by 77% to INR 90.6 Cr from INR 51.3 Cr in the previous year, suggesting that the startup expanded its workforce during the year under review.
Wow! Momo’s rent expenses soared to INR 62 Cr in FY23, marking a remarkable 109% increase from INR 29.6 Cr in the previous year. This uptick aligns with the startup’s expansion into various regions across the country.
Continue Exploring: Wow! Momo’s rapid expansion continues with a buzzing new outlet at GMR Hyderabad International Airport
The EBITDA loss saw an improvement to INR 5.58 Cr from INR 15.8 Cr in FY22, alongside a boost in the EBITDA margin to -1.35% in FY23 from -7.2% in the preceding year.
Established in 2008 by Binod Kumar Homagai, Sagar Daryani, and Shah Miftaur Rahman, Wow! Momo boasts a presence spanning over 25 Indian cities with more than 500 outlets. In March 2023, the startup announced its decision to unify all its brands under the umbrella brand, Wow! Eats.
Last month, the startup raised INR 70 Cr from homegrown investment firm Z3Partners. Earlier this year, it had secured $42 Mn from Malaysian sovereign fund Khazanah Nasional Berhad.
Continue Exploring: Wow! Momo secures INR 70 Crore funding boost from Z3Partners to fuel expansion and R&D efforts
In total, the startup has amassed approximately $135 Mn in funding to date, with notable backers including Tiger Global, ValueQuest Capital, and Lighthouse Funds.
Wow! Momo competes with renowned players such as Jumbo King and Goli Vada Pav in the fast food industry.