Start-up Wow! Momo plans to start exports, even as it hopes to close its latest round of financing by March 2017, co-founder and CEO Sagar Daryani said.
“We are planning to commence frozen momos exports to the U.S., U.K., Dubai and Singapore by the next fiscal” Mr. Daryani said.
The firm would reserve space for this in an upcoming city unit with a capacity for making six lakh momos.
The quick service restaurant company is also hoping to raise ₹50 crore by April. “We have received three offers and would choose a venture capital [investor],” Mr. Daryani said.
The eight-year-old start-up raised ₹10 crore in August 2015 to finance its expansion from 43 outlets to 96. It has also raised ₹7 crore debt from Bandhan Bank.
The company also plans to diversify by selling its sauces through its stores and modern trade.
It succeeded in turning the demonetisation threat into an opportunity by wooing customers waiting at ATM queues by first offering drinking water and then menu cards with various discount offers and even momos-on-the-go.
“This way we checked the 40% slide in sales in the first week after November 8 and now we have recovered,” Mr. Daryani said.
Mumbai, Hyderabad entry
The firm, which is now present in Kolkata, Bangalore, Chennai, Kochi, Pune, Delhi, Gurgaon and Noida, is planning to enter Mumbai and Hyderabad by next fiscal.
The start-up opened its 100th outlet in the city in the presence of Sanjeev Bhikchandani, founder and vice chairman of InfoEdge and one of Wow Momo’s lead investors. By 2021, 500 outlets are planned, including in Mumbai, Hyderabad and Patna. “Chennai is our most profitable venture after Kolkata and we are planning to expand,” Mr. Daryani said.
