Wow! Momo is in the midst of securing a bridge round of ₹150 crores ($15-17 million) to fuel its continued growth. The company has already raised ₹90 crores from existing investors Khazanah- the Malaysian sovereign fund, and Kamal Agarwal, the owner of Haldiram’s Nagpur.With talks underway with several high-net-worth individuals (HNIs) and investors, Sagar Daryani, Co-Founder & CEO of Wow! Momo Foods noted that the company aims to close the round within the next few weeks.The bridge round will be followed by a larger fundraising round slated for the second half of 2025. This upcoming round, projected to be between $80-$100 million, will be split between primary and secondary capital. “It’s more about cleaning up the cap table and preparing for our IPO,” said Daryani. “We’re aiming for an IPO in the next two to three years, possibly between 2028 and 2029, with a target revenue of ₹1,100-1,200 crores and ₹100 crores in EBITDA.”
Daryani also emphasised that this additional capital is crucial to fueling the growth of its various verticals, including the fast-growing FMCG segment, and to provide existing investors with an exit. The funds will also help Wow! Momo continue its upward trajectory towards becoming a debt-free entity before its eventual IPO.Aggressive Store Expansion
Wow! Momo is set to open 250 new stores in the coming year, with an average of 21 new stores per month. This expansion will help the company ramp up its reach and boost its revenue from the current ₹640 crores to an expected ₹900 crores in the coming fiscal year, a growth of approximately 45%.According to Daryani, these new stores are key to driving the company’s ambitious revenue targets. “We need capital to fuel this growth, but it’s also about reducing costs and becoming more cash positive,” he explained. With the company already growing at a rapid pace—boasting an annual growth rate of 35-40%—this expansion is expected to significantly contribute to Wow! Momo’s projected revenue increase.FMCG and Horeca Verticals to Drive Future GrowthWhile Wow! Momo’s core business has been focused on quick-service restaurants (QSR), the company is increasingly banking on its FMCG and Horeca (Hotel, Restaurant, and Catering) segments for long-term growth. Daryani shared that the company has made significant strides in the FMCG space, becoming a ₹5-crore monthly business within just 28 months of launching the vertical.“We’ve captured a lot of market share in the frozen foods segment. We started with frozen momos and now have products like Kappa noodles and chicken and cheese smileys,” Daryani explained. Wow! Momo is also preparing to launch a range of sauces and spices, including its popular Wow! Momo sauce, which has seen high demand in-store.Additionally, the Horeca vertical, which involves selling momos to five-star hotels and major brands like Zepto, is expected to be a significant revenue driver moving forward.Watch the accompanying video for more
