Although primarily a QSR start-up selling fresh momos and other products from its outlets, Wow Momo isn't planning to open restaurants abroad in the very year of the global foray.
Setting an ambitious target of earning Rs 500 crore revenue in the coming five years, Kolkata-based QSR (quick service restaurant) start-up Wow Momo, which aims to become a global brand, is readying plans for an international foray.
For the financial year ended March 31, 2016, the company registered a Rs 50 crore turnover.
Although primarily a QSR start-up selling fresh momos and other products from its outlets, the company isn't planning to open restaurants abroad in the very year of the global foray.
Instead, it is working on a new product category — frozen momos — which it plans to sell in the US, Europe and the West Asia. Once rolled out, the frozen momo food category is expected to contribute 20 per cent to its top line.
"Globally, the trend has shifted from junk foods to healthy foods and our product category is one that matches this global trend", Sagar Daryani, the start-up's co-founder and chief executive officer said, adding that momos in the international market will be an instant hit.
This initiative, as well as a planned domestic expansion, will need a fresh infusion of funds to the extent of Rs 50 crore. It has arranged the necessary funds by bringing in investors in a move that will dilute the founder's stake by another 15-18 per cent but is estimated to raise its enterprise valuation to Rs 300 crore from the current Rs 100 crore.
For the new product category, Wow Momo, has availed a bank loan to take land on lease in an industrial estate in Kolkata for a second five-storied base kitchen that will primarily focus on freezing the momos, but will also make fresh steamed dumplings. The upcoming plant has a capacity to make 500 thousand momos a day.