Fast-food chain Wow Momo Foods Pvt Ltd, which is planning to go public with an IPO in the next two years, has said that its four Quick Service Restaurant (QSR) brands—Wow Momo, Wow China, Wow Chicken, and its latest addition, Wow Kulfi — are operating profitably. However, its Fast-Moving Consumer Goods (FMCG) business may require some time to pick up, estimating a couple of years before this division moves into the black.
“At the corporate level, we are currently EBITDA negative by 1-2%, but operationally, the business remains profitable,” Sagar J Daryani, Co-Founder & CEO of Wow Momo Foods told businessline.
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He added that while the FMCG segment is still incurring losses, it is growing rapidly, with revenues surging from ₹4 crore to ₹40 crore this year, though this growth comes with a ₹15 crore burn. “Despite these losses, I’m confident it’s a temporary burn, expected to last another 12 to 18 months.”
The company’s QSR brands—Wow Momo, Wow China, Wow Chicken, and Wow Kulfi—continue to perform well. The FMCG segment, which includes packaged momos and the newly-introduced Kappa Noodles, is still in its expansion phase. “Our QSR business is well-capitalised, and we’re not burning money in that segment,” he added.
Discussing the FMCG segment’s strategy, Daryani noted that the company is focused on providing multi-channel availability. “Consumers today expect to find our products across various platforms, which is why we launched frozen momos through FMCG channels. We sell them on platforms like Zepto and Instamart, as well as in retail outlets like D-Mart, Spar, and Smart Bazaar,” he explained, stressing the importance of a multi-channel presence in today’s market.
Footprint expands
The company’s rapid growth is reflected in its footprint. Wow China, launched during the COVID-19 period, now operates at 200 touchpoints. Wow Momo has expanded to around 450 locations, while Wow Chicken, which debuted 18 months ago, has grown to 50 touchpoints. Wow Kulfi, introduced just three months ago, is currently available in East India but will soon expand to the South and North. By year end, the company aims to have 50 Wow Kulfi kiosks across India, adopting a shop-in-shop model similar to McCafé within McDonald’s stores. Also, the company’s Kappa Noodles was recently introduced on Akasa Airlines and is set to roll out on SpiceJet, AirAsia, and Air India Connect soon.
Currently, 60% of Wow Momo Foods’ revenue comes from offline channels, while 40% is driven by online sales. The company is aggressively expanding its presence, with plans to add 210 stores this year. Last year, the company generated ₹470 crore in revenue, and this year it is targeting ₹650 crore, an increase of 40 per cent.
To strengthen its direct-to-consumer reach, the company is set to launch its own app, Wow Eats, in the coming month. Daryani noted that while aggregator platforms drive traffic, the new app will help retain customers by offering better pricing and value. “With 60% of our customers already coming directly to us, the focus is on offering better pricing and value through the app for the benefit of both sides,” he added.