Wow! Momo Reports 14% Growth in FY24 Revenue

Wow! Momo, the quick-service restaurant chain, has achieved a growth of 14% in operating revenue for the fiscal year 2024. However, this growth is significantly lower than the 88% increase seen in FY23, suggesting a deceleration in expansion rates. Despite this slowdown, the Tiger Global-backed company has successfully kept its losses stable, remaining unchanged for the fiscal year ending in March 2024.

According to consolidated financial reports filed with the Registrar of Companies, Wow! Momo’s revenue from operations increased to Rs 470 crore in the last fiscal year, up from Rs 413 crore in FY23.

About Wow! Momo Foods

Founded in 2008 by Sagar Daryani and Binod Homagai, Wow! Momo Foods manages three distinct quick-service restaurant brands: Wow Momo, Wow China, and Wow Chicken. The company boasts a network of 630 outlets spread across 35 cities and employs approximately 6,000 people.

Revenue Breakdown

The sale of momos, food, and beverages made up a substantial 97% of the total operating income, which rose by 11.5% to Rs 456 crore in FY24. Additional revenue streams included frozen momo sales. Furthermore, Wow! Momo generated Rs 9 crore from interest on deposits, bringing its total revenue to Rs 479 crore for the fiscal year.

Expenditure Details

For the company, the cost of material procurement represented 26.6% of total expenditures, which grew by 15.3% to Rs 158 crore in FY24, consistent with the growth in revenue. Employee benefit expenses saw a significant decline of 27.7%, amounting to Rs 120 crore in the previous fiscal year.

Costs associated with power and fuel, rent, advertising, commissions, finance, and other overheads contributed to an 11.9% increase in total expenditures, reaching Rs 593 crore in FY24. A comprehensive cost analysis can be found in various financial sources.

Financial Performance and Assets

The company’s scale increased by 13.8%, coupled with controlled expenses, enabled Wow! Momo to maintain consistent losses amounting to Rs 114 crore in FY24. The Return on Capital Employed (ROCE) and Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin were reported at -8.33% and 7.93%, respectively, alongside an expense-to-revenue ratio of Rs 1.26.

By the end of FY24, Wow! Momo’s total current assets were noted at Rs 250 crore, which included Rs 175 crore in cash and bank balances.

To date, Wow! Momo has successfully raised over Rs 600 crore, which includes $42 million (Rs 350 crore) from its Series D funding led by Khazanah Nasional Berhad, Malaysia’s sovereign wealth fund. According to data from a startup intelligence platform, Tiger Global stands as the largest external investor, followed by Treeline Investment.

Future Goals

Looking ahead, Wow! Momo has set a target of Rs 650 crore in revenue for FY25, driven by improved unit economics, and is planning to go public by 2027.