Fast-food chain Wow Momo Foods is planning to go public within the next two years, according to its CEO, Sagar Daryani. The popular dumpling brand, known for its rapid growth, seeks to mirror the success of Domino’s Pizza in India, where the fast-food sector is valued at USD 5 billion and continues to thrive among low- and middle-income consumers.
With a valuation of INR 2,500 crore (USD 299.33 million) and a network of 650 stores, Wow Momo is positioning itself to become the first major homegrown fast-food chain to list publicly. Backed by Tiger Global, the company reported revenues of INR 4.8 billion (USD57.47 million) for the fiscal year ending March 2024. The goal is to double that figure to INR 10 billion over the next 30 months, Daryani told Reuters.
“The public markets are really, really growing… A homegrown fast-food chain IPO will change the script for the fast-food sector in India,” Daryani said.
While franchisees of global brands like KFC, McDonald’s, Burger King, and Domino’s have gone public in the past decade, local brands are beginning to follow suit. Barbeque-Nation Hospitality’s IPO three years ago marked one of the few local listings, with shares rising nearly 28% since its debut, despite some consumer footfall challenges due to inflation.
Daryani hopes to replicate the growth of Jubilant FoodWorks, which grew Domino’s from a single outlet in India in 1996 to over 1,800 locations today. Wow Momo, with its savory dumplings priced between INR 109-369 (USD 1.31-USD PER 4.42), plans to expand its store count to 1,000 and reach profitability within two years, focusing on core earnings metrics.
Despite a dip in same-store sales from October to May amid a broader slowdown in the Indian fast-food space, Wow Momo saw a rebound from June to September, with sales returning to positive territory.
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