Quick-service chain Wow! Momo is seeking up to ₹300 crore in funding to support domestic and international expansion as it gears up for an IPO within two years. The company aims for ₹1,050 crore revenue in FY27, though it faces margin pressures from rising ingredient costs and high delivery app commissions. Investors are tracking how the firm manages these operational headwinds alongside its growth plans.
Quick-service restaurant chain Wow! Momo is actively seeking a capital infusion of ₹250–300 crore to accelerate its expansion and prepare for a public market debut expected within the next 18 to 24 months. The Kolkata-based company is aiming for revenue of approximately ₹1,050 crore for fiscal year 2027 as it looks to strengthen its domestic restaurant network and manage its financial obligations.
Expanding the Restaurant and Packaged-Food Network
The company is pursuing a dual growth strategy focused on increasing its physical restaurant footprint and scaling its packaged-foods business. Internationally, Wow! Momo has entered into a master franchise agreement with Softlogic Corp to launch in Sri Lanka by late 2026. The company is also evaluating entry into the UAE, with long-term aspirations to enter the United States and China by 2030. Simultaneously, its packaged-foods division is working to reach 14 countries, with plans to expand into five additional markets, including Canada and Malaysia, over the coming year.
Navigating Inflation and Delivery Costs
While the company is scaling up, it is operating in a difficult environment characterized by persistent food inflation. Costs for key commodities, such as chicken, edible oils, and packaging materials, have risen by 7–8%. This inflation has placed significant pressure on profit margins. Additionally, the company is dealing with rising expenses associated with third-party delivery platforms. Commission fees paid to these platforms have surged from near-zero pre-pandemic levels to roughly 10% of the company's profit and loss account. To mitigate this impact, Wow! Momo has implemented price increases of approximately 6% and is exploring alternative delivery methods to reduce its dependence on these high-fee channels.
Despite these industry-wide challenges, the company’s core brands—Wow! Momo, Wow! China, and Wow! Chicken—have shown resilience. In the first half of fiscal year 2027, the firm reported a 14% growth in same-store sales, which measures revenue growth from existing outlets. This performance reflects sustained consumer demand despite the implemented price hikes. The company has historically drawn interest from major institutional investors, including Tiger Global Management and Khazanah. As the firm moves toward its IPO, the primary monitorables for investors will be the successful execution of its international projects and its ability to protect profit margins against rising input costs and delivery platform commission fees.