Wow! Momo Foods is aligning its initial public offering (IPO) roadmap with a clear revenue milestone of Rs 1,700 to Rs 1,800 crore by the financial year 2029, alongside a sharper focus on profitability and disciplined growth. The company is targeting a steady scale-up in margins, aiming for 7 to 8 per cent corporate Ebitda with a trajectory towards double digits, while maintaining a 25 to 30 per cent growth rate before tapping public markets, Sagar Daryani said.
In an interview with BW Businessworld, Daryani, who is the Co-founder and Chief Executive Officer of Wow! Momo Foods said that the potential listing is currently pegged at a 24 to 30-month horizon, contingent on both internal financial readiness and external market conditions.
Alongside its IPO ambitions, the company is accelerating expansion across tier 2 and 3 markets, with plans to open 150 to 200 new stores this year and scale its footprint from around 90 cities to 150 cities over the next two years, where demand remains strong and underpenetrated. It is also scaling its FMCG vertical, which has already crossed Rs 100 crore ARR, by taking core QSR bestsellers into ready-to-eat formats, with a calibrated growth strategy aimed at maintaining profitability and keeping the business net profit-positive as it scales.
International markets such as the United Arab Emirates (UAE) and Sri Lanka are next on the radar, as the brand positions itself as a homegrown QSR chain with global aspirations. Daryani, who is also the President of the National Restaurants Association of India (NRAI), added that the LPG supply issues have impacted the restaurant industry significantly
Non-metros As High-demand ‘Destination’ Hubs
Calling tier 2 and 3 cities the “real Bharat” where the “real juice is,” Daryani said that consumers in these markets are “highly aspirational” and increasingly brand-aware, driven by digital exposure. However, what they lack is access and once a brand enters, the response is overwhelming. “Brands are worshipped,” he said, noting that new store launches often see “huge queues” and a “carnival feel,” with strong footfall sustained for weeks as consumers flock to try the offering.
He pointed out a clear behavioural contrast with metros. In smaller towns, QSRs continue to be a “destination place,” even for occasions like Valentine’s Day, where consumers prefer to “come… and eat” rather than order in. To cater to this, the company is opening larger, dine-in focused stores that offer a more complete experience. In contrast, metros have seen QSR evolve into “comfort, convenience food,” while casual dining has become the primary destination for outings.
“Rentals are much lower. Minimum wages are much lower. However, the revenue, I would say that throughput sales per square feet is at par with metro cities. So that is not a challenge,” he added. He emphasised that “demand is not a challenge” in these regions.
Wow! Momo is doubling down on aggressive expansion, with plans to open “150 to 200 new stores” this year, after adding 200 outlets last year, while entering a large number of new markets. Nearly “70 per cent of the stores will be new cities and towns,” taking its presence from around 90 cities to a targeted 150 cities over the next two years, as the company looks to tap into new consumer segments and demand pockets.
Daryani emphasised that store expansion today is “more of a science, not a gut feel,” with decisions heavily driven by data and analytics. Instead of benchmarking against other momo players, the company tracks giants like Domino’s, KFC and McDonald’s, studying their “data, numbers, performance” and identifying high-potential micro-markets to co-locate stores. “For me, competition is not another momo player,” he said, underlining a broader QSR lens.
IPO Timeline
The company is tying its IPO plans closely to achieving stronger profitability metrics, with the QSR business currently “close to break even.” The immediate focus is to scale margins to “7 to 8 per cent of corporate Ebitda” while sustaining growth of “25 to 30 per cent” before considering a public listing. The longer-term goal is to further expand Ebitda to “10 to 12 per cent.”
On timelines, Daryani indicated a tentative window of “24 to 30 months,” although he acknowledged that macro uncertainties could influence the pace. Factors such as the ongoing LPG crisis, inflationary pressures and rising fuel costs have made the near-term outlook “very uncertain,” pushing expectations closer to “two and a half years” rather than two.
Importantly, he emphasised that there is “no pressure” from investors to rush into an IPO, with flexibility to wait until the business is fully ready. The broader ambition is to create a milestone moment as a homegrown brand, with aspirations of becoming “the first Indian QSR chain to go public,” while ensuring the timing aligns with both business fundamentals and market conditions.
The business, which moved from a “plus 10 per cent” margin to “minus 14 per cent,” has now recovered to “minus one, minus two,” and is targeting a return to profitability soon. At the same time, the company is strengthening its leadership structure and eyeing global expansion, entering markets like the UAE and Sri Lanka, while building an “Indian brand going global” story backed by exports across GCC, Europe and North America.
Scaling The FMCG Brand
The company’s FMCG strategy is built around the idea that “ready to eat is also an occasion,” tapping into a largely “lowly untapped” space by bringing convenience-led consumption into homes. The focus is on enabling consumers to consume their favourite products “within two minutes,” whether between “Zoom calls” or while hosting guests, making ready-to-eat a seamless extension of dine-in and delivery occasions. The brand is positioning its products as everyday essentials, “your fridge or your kitchen should have these products stacked in,” he added.
Daryani pointed out that the core growth lever lies in converting QSR bestsellers into FMCG offerings. After seeing strong response to momos, the company replicated the model across Wow China products like “Chinese Bhel, Chilli Chicken Noodles” and “Veg Manchurian Noodles,” while also entering adjacent categories such as Korean noodles, aiming to offer an “Indian version… at par or maybe a better taste” than imports.
With 'Wow Kulfi' now set to enter FMCG and further plans for Wow Chicken, Daryani said the company has a “product stack properly defined for the next three years,” with “one or two products” being launched annually. Despite operating in a highly competitive and capital-intensive space, the company is taking a calibrated approach to scale.
Growth is being balanced with profitability and working capital discipline, with the aim of keeping the business “PAT positive” at around Rs 200 crore scale. “We are not looking at abrupt growth,” Daryani said, adding that after 100 per cent growth in the past two years, the focus is now on a more sustainable 60 per cent growth while ensuring the P&L remains strong.
Gen Z, Consumption And AOV Push
The Co-founder noted that the company is balancing value pricing with premiumisation by first building trust through its core offerings and then nudging consumers towards higher-value products. As Daryani explained, once consumers come in for the “very basic product,” they begin to experiment, allowing the brand to “increase the AOV” through value-added variants. The strategy is to “move the consumer chain to a level where the aspirational value goes up,” with innovations ranging from chilli and kurkure momos to gluten-free options, encouraging repeat consumption through gradual upgrades.
This premiumisation extends beyond momos into broader cuisine innovation, particularly with Wow China, where the brand is introducing “flavours of Asia” such as katsu curry and Mapo Tofu to elevate the experience. The focus, he said, is on “enhancing the consumer experience and building the consumer aspirational level,” while continuously evolving with changing tastes. With a core TG spanning from kids to young adults, the brand aims to “catch them young and grow with them,” adapting to the rising influence of Gen Z.
Product innovation is also closely tied to trendsetting and cultural relevance. From launching Korean momos ahead of the curve to introducing campaigns like the “India Momo League,” the brand is focused on staying embedded in consumers’ lifestyles. “It is how you relate to people’s lives… and become a part of their social circle,” Daryani noted.
At the same time, shifting consumption patterns, led by Gen Z, are reshaping the QSR landscape. With consumers “very app driven” to instant gratification, impulse ordering has surged, making QSR a go-to for “comfort, consistent and convenient food.” In contrast, casual dining has become “more experiential,” with consumers seeking new experiences rather than repeat visits. This dynamic is also expanding consumption occasions, with late-night demand now “as big as lunch,” he pointed out.
Status On LPG Crisis
The LPG crisis that once threatened widespread shutdowns across the restaurant industry has eased, but not without disruption. Daryani noted that the situation was initially “very disturbing” as LPG supply to restaurants was severely constrained, prompting industry intervention through NRAI. Following discussions with the government and oil companies, allocation has improved significantly, from an initial “10 per cent” to around “50 per cent” today, he added.
While the situation is now “much better,” the impact was visible at its peak, with “10 to 15 per cent restaurants” reportedly shutting down by the end of March, though many are now reopening. In the interim, operators were forced to adapt by “reducing their operating hours” and “limiting their menu,” as inconsistent supply disrupted normal functioning. State-wise disparities also persisted, with regions like Delhi NCR responding more proactively compared to others.
The crisis has also accelerated a shift towards alternative energy solutions, albeit with challenges. Many restaurants have partially transitioned to induction and electrical equipment, with some processes like frying moving “from the stove” to “electrical fryer.” However, Daryani pointed out that switching is not seamless, as infrastructure constraints, like securing adequate electrical load, can take time. Despite this, demand for induction has surged “almost 300 per cent,” signalling a broader “shift in mindset” across both commercial and household consumption.