Wow! Momo’s Loss Flat At INR 114 Cr In FY24

SUMMARY

Wow! Momo’s net loss remained almost flat at INR 114.4 Cr in the financial year 2023-24 while its operating revenue rose 13.83% to INR 470 Cr during the year under review from INR 412.9 Cr in FY23

Wow! Momo’s EBITDA stood at INR 38.2 Cr in FY24 as against an EBITDA loss of INR 1.7 Cr in the previous fiscal year

The startup’s expenditure for the fiscal year under review grew 11.9% to INR 593.1 Cr from INR 530 Cr in FY23

Kolkata-based QSR chain Wow! Momo’s net loss remained almost flat at INR 114.4 Cr in the financial year 2023-24 (FY24). This was 0.53% higher than the loss of INR 113.8 Cr in FY23.

Its operating revenue rose 13.83% to INR 470 Cr during the year under review from INR 412.9 Cr in FY23.

The startup also hit EBITDA profitability during the year under review. Wow! Momo’s EBITDA stood at INR 38.2 Cr in FY24 as against an EBITDA loss of INR 1.7 Cr in the previous fiscal year. EBITDA margin improved to 8% in FY24 from 0% in the previous fiscal year.

Founded in 2008 by Binod Kumar Homagai, Sagar Daryani, and Shah Miftaur Rahman, Wow! Momo operates over 300 outlets across 17 cities. It also operates Wow! Chicken, Wow! Kulfi and Wow! China brands, and sells a variety of frozen food via its FMCG vertical.

The startup primarily competes with the likes of Rebel Foods, Curefoods and EatClub in the restaurant and cloud kitchen segments.

It last raised INR 70 Cr from Z3Partners in April last year, three months after it bagged INR 350 Cr in its Series D funding round led by Malaysian sovereign fund Khazanah in January last year. Overall, it has raised a total funding of over $135 Mn to date and counts Tiger Global, Lighthouse, among others, as its investors.

In October, it was reported that Wow! Momo is targeting a revenue of INR 650 Cr in the ongoing financial year. It is also planning to float an initial public offering (IPO) in 2027, but it would hinge on it hitting the INR 1,000 Cr revenue mark.

Breaking Down Wow! Momo’s Expenses

The startup’s expenditure for the fiscal year under review grew 11.9% to INR 593.1 Cr from INR 530 Cr in FY23.

Employee Benefit Expenses: The spending under this head dropped 27.7% to INR 120 Cr from INR 166.1 Cr in FY23. This was likely due to headcount reduction.

Advertising & Promotional Expenses: The startup’s advertising expenses more than doubled to INR 26.5 Cr from INR 11.9 Cr in FY23.

Commission Paid To Other Selling Agents: Wow! Momo’s expenses under this head grew 12.9% to INR 32.4 Cr in FY24 from INR 28.7 Cr in FY23.