Wow! Momo plans ₹250-300 crore fundraise ahead of IPO
Wow! Momo Foods is planning a ₹250-300 crore fundraise to finance its restaurant expansion in India, according to Mint, which said it had learnt of the plan.
The founders could participate in the round alongside incoming investors.
Mint reported that the proceeds would go toward new store openings, working capital and the repayment of some debt. The round comes ahead of a potential initial public offering in the next 18-24 months. The company has previously indicated it would consider an IPO before the end of calendar year 2028.
Wow! Momo is a Kolkata-based quick-service restaurant chain that operates three brands: Wow! Momo, Wow! China and Wow! Chicken. It runs around 860 outlets and also sells packaged foods through a separate arm, Wow! Momo FMCG, which sells products in 14 countries.
The company reported revenue of about ₹830 crore in FY26, up from ₹630 crore in FY25. It expects to close FY27 at approximately ₹1,050 crore and to end the year with about 910 outlets.
The company is also preparing to expand overseas. Wow! Momo plans to enter Sri Lanka by the end of 2026 through a master franchise partnership with local entity Softlogic Corp, with about 25 outlets planned over the first three years. Softlogic will fund the outlets and local production, while Wow! Momo earns fees and royalties and provides operating support.
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The UAE is the next market under consideration for the restaurant business, through a local partner. The US and China are longer-term targets, with entry being considered by FY30.
The packaged-food arm contributes 12% of the company's overall business, about ₹10 crore a month, and is growing at about 100% annually on a smaller base, against 20-25% for restaurants. Daryani said it is also more profitable than the restaurants. The company expects its share to rise to 20% by the end of the year.
The restaurant business faces cost pressure. Food inflation across the industry has run at 7-8%, and delivery platform commissions now account for about 10% of the company's profit and loss statement, up from around 1% before the pandemic. About half of restaurant sales now come through delivery platforms.
Wow! Momo has raised about ₹625 crore since inception. Its existing investors include Tiger Global Management, Khazanah, 360 One and the owner of Haldiram.
The company reported same-store sales growth of 14% in the first half of FY27. Daryani put that against single-digit growth at listed peers.
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