Wow! Momo mints crores in startup business

Jhimli Mukherjee Pandey & Udit Prasanna Mukherji,TNN | Aug 11, 2015, KOLKATA: It all started with a capital of jsut Rs 30,000 in 2008 by two St Xaviers passouts. In just seven years, city-based quick service restaurant (QSR) chain Wow! Momo is commanding a valuation of Rs 100 crore. Indian Angel Network, one of the largest angel networks of the country led by Sanjeev Bhikchandani, the founder of Naukri.com, has picked up 10% stake in this Tibetian-Nepalese food chain for Rs 10 crore.

Venture capital experts pointed out that this is one of the biggest valuations received by any QSR chains in India since angel funding became popular in the country. Sagar Daryani, co-founder of Wow! Momo, said this is one of the most successful first rounds of funding of any startups. "We are planning a second round of funding after 18-24 months," he added. Wow! Momo had a turnover of Rs 20 crore in 2014-15 and eyeing Rs 37 crore in the current fiscal.

Momos were not new to people, but what they did with them certainly was. According to Daryani, Wow! Momo is a young and vibrant brand started by them at the age of 21. "We have played with momos to have grown rapidly to become the country's largest momo chain in terms of volumes, turnovers and innovations," he added.

Daryani pointed put that its menu caters to 11 different flavors of momos available in Steamed, Fried & Pan Fried formats largely in white & brown flour variants. They have smartly innovated and invented to create Sizzler Momos, Mogurg (Momo Burgers) and Momo Chats. And to top it all, even their dessert is a 'chocolate momo'. This format operates out of kiosks, food court outlets, shop-in-shop models and high Street Quick Service Restaurants. "We first started at Spencers at South city and expanded rapidly after that. Now we have 51 outlets in six cities with headquarters in Kolkata," he added. Wow! Momo has presence in Kolkata, Bangalore, Kochi, Pune, Chennai and Delhi.

Sanjeev Bhikchandani, who invested in a food chain for the first time, said, "Wow! Momo is the true reflection of the Indian mindset of standardizing products and Innovation in the F&B space. While you have access to multiple momo stalls across your locality, Wow! Momo as a brand promises great and consistent quality while exciting taste buds with innovative momos that have never been created tried before. At IAN, we recognize the market potential, talent, and the urge to disrupt the ecosystem, which is evident in Sagar, Binod, and their venture." Bhikchandani also indicated that he may evaluate the opportunity of funding during the second round of fund infusion as well