Wow! Momo’s FMCG division, which is just two years old, is poised to significantly enhance the company’s overall earnings, according to co-founder Sagar Daryani. The company aims to achieve revenues between ₹1,000-1,200 crore and an EBITDA of ₹50-80 crore by 2027. Currently, the FMCG segment has generated ₹60 crore in revenue.
Wow! Momo Pvt Ltd is actively expanding, with plans to go public and double its revenue as its FMCG business flourishes. With approximately 680 stores under its three primary brands—momos, chicken, and Chinese quick service restaurants—the Tiger Global-backed company anticipates an EBITDA of ₹50-80 crore by FY27. Daryani noted that growth is expected from the core momo brand as well as emerging segments like its kulfi brand and the FMCG line, which includes frozen momos and cup noodles.
Daryani emphasized the importance of being present across various categories, as consumers are enjoying momos not only in stores but also at home. He believes the FMCG business could match the quick service restaurant segment in revenue within the next decade. While he did not disclose a timeline for an initial public offering, he mentioned that the company expects to finish the current fiscal year with ₹625 crore in revenue, with the FMCG division contributing ₹60 crore in its second year. By the time of the company’s listing, the FMCG segment is projected to represent about one-sixth of total revenue.
The company is also expanding its chicken brand, which competes with KFC, currently operating 50 stores in southern and eastern India. Daryani stated that this segment will become profitable once it reaches around 100 stores, noting that the chicken business has a slightly lower gross margin of 60% compared to the 70% margin for momos.
Since its inception, the company has raised approximately ₹625 crore in funding, including ₹40 crore from Lighthouse Funds in 2017 and ₹120 crore from Tiger Global Management in 2019. The company’s valuation was around ₹2,500 crore during its last funding round.
The Wow! Kulfi brand, introduced last year within momo outlets, is still in its early stages of growth, currently operating 260 points of sale and generating ₹1.5 crore in monthly revenue. The increase in delivery orders during the pandemic has been a double-edged sword, with deliveries now making up 40% of the business, up from 10% pre-pandemic. While this shift has attracted more customers, it has also led to higher costs due to logistics and discounts, resulting in reduced margins.
