SEC: INNOVATION & ENTREPRENEURSHIP

ASSIGNMENT

BUSINESS CASE STUDY: WOW! MOMO

Submitted By: ARYAN TIWARI

Roll No. : 0 922030
Cou rse: B.Com (P)

Subject: SEC- Innovation & Entrepreneurship

 BUSINESS CASE STUDY: WOW! MOMO

“In any market, a brilliant concept supported by a clear vision and

competitive plan leads to success.”

With the success of their company, the Kolkata-based duo of two

friends has proven the above point. WOW Momo is a well-known fast-
food restaurant chain with headquarters in Kolkata, West Bengal.

They specialize in momos, a typical dish in Nepal, Tibet, and India.

Based on various factors such as volume, product innovation or variety,
and turnover, it has grown to become India's largest momo chain and
fastest growing Quick Service Restaurant chain.

The founders plan to add 400 more outlets by 2021 and make the brand
global by opening locations in the United Kingdom, the United States,
Canada, and other countries.

Wow Momo Foods in 2021 emerged as the most valued homegrown

QSR brand in India with a valuation of ₹1,225 crores.[8] The Company
has grown its foothold completely with company operated outlets; it
does not have any franchise plans as of now.

As of December 2022, there are around 425 outlets across 19 cities in

India. Wow! Momo Foods Pvt. Ltd. operates 3 Brands; Wow! Momo,
Wow! China and Wow! Chicken which was launched in December 2021.
The company aims to be an IPO in a few years with plans to gain a
global foothold, i.e., they want to compete with the likes of Domino's
and McDonald's.

The Story Behind

Key Persons: Sagar J. Daryani (CEO), Binod K. Homagai (COO), Shah
Miftaur Rahman (CFO)

WOW Momo was founded by Sagar Jagdish Daryani and Binod Kumar
Homagai, two entrepreneurs from Kolkata. Both the founders of the
brand had dreamt of starting a momo company while studying M.Com
in the same batch at Kolkata's St. Xavier's college. So you might be
thinking, why momos?

Well! Binod is from Nepal, where momos originated, and Sagar

remembers loving momos, especially from a vendor who sat outside his
school. It was Sagar's brain-child to start selling a variety of high-quality
momos after witnessing some street vendors famous for their variety.
While in college, they both were offered jobs at an international bank
with a salary package of Rs. 3 lac p.a. However, rather than embracing
the job offers, both choose to pursue their dream of opening a momo
company!

And this is how WOW Momo was established in 2008 with a small
investment of Rs. 30,000, which Sagar's parents made. They began in a
200-square-foot kitchen with one table, employed two cooks on a part-
time basis with a low wage, and raw materials for momos were
purchased on credit from a nearby grocery store. These became the
foundation of emerging businesses.

Later on, they purchased a 6/6 kiosk on a rental basis at Spencer's retail
in South Kolkata in exchange for 18 percent revenue sharing every
month. Initially, Momos were sold for 40 rupees per plate.

They had built a market base for WOW Momo through their marketing
strategies and promotional activities. As a result, the brand made a sale
of approximately Rs. 2200 on the first day, and sales increased to Rs.
53000 by the end of the month.

By their current success, they have shown that taking risks is a

significant aspect of entrepreneurship.

• Their Mission And Vision

Mission- WOW Momo aims at providing people with nutritious and
steamed delicacies while creating employment opportunities.

Vision- The vision is to be India's version of McDonald's and expand

internationally to become one of the world's fastest-growing QSR
chains.

• Hindrances They Faced And How They Solved

Initially, they just had a small kiosk to start their business, and
expansion was challenging. So to gain customers and increase their
reach, the founders focused on product-oriented marketing campaigns
wherein they would wear a yellow t-shirt and go to customers with a
tray of momos for taste sampling.

WOW Momos faced competition from street vendors who sold momos
at a lower price. However, WOW Momos had a competitive advantage
over street vendors due to the high quality, sanitation, and variety in
momo flavors.

Moreover, at the starting of the business, problems arose when

government officials began fining WOW Momos for failing to obtain
licenses, but eventually, things sorted out.

For WOW Momos, the road has not been without difficulties, yet every
blunder has taught them something essential.

What Do They Do?

WOW Momos serve a wide range of momos (both veg and non-veg),
including steamed, baked, and pan-fried options with three delectable
sauces and fillings ranging from vegetables, mushrooms, and paneer to
fish, chicken, and prawn. To top it all off, there's a chocolate momo!

Their various sweet or spicy sauces are used for frying these momos to
give them an Indian flavor. In addition, they offer Momo chats, Tandoori
momos, baked momos, and even Momo Burgers.

Steamed momos, chicken momos, chicken and cheese momos,

Schezwan momos, and prawn momos are a few varieties of their
momos. Vegetarians can choose from corn momos, corn and cheese
momos, Mushroom Momos, and other options.

The category of food items available with them are:-

1. Steamed Momo

2. Butter masala momo

3. Tandoori Momo

4. Fried Momo

5. Sizzler momo

6. Pan-Fried Momo

Moreover, it has partnered with various companies like ITC, Nestle etc.
to make its new Grocery launch arm successful.

• Business Model Of Wow Momo

The business model represents a company's success plan. WOW
Momo's popularity can be attributed to its redesigned business model.

The business model followed by WOW Momo is the company Owned-

Company Operate model. They handle all activities on their own, from
material acquisition to packaging and distribution! Each city has its
central cloud kitchen.

• Rewards And Recognition

1. Best Dim-sum product chain in Indian Restaurant Congress Award

2016
 2. Best Unique Retail Concept Award–Images Retail Award 2017

3. Best Quick Service Restaurant in Indian origin - Coca-Cola Golden

Spoon Award 2018

4. Best Innovation in Store Design - Coca-Cola Golden Spoon Award

2018

• Their Road To Success

"Simplicity, passion, and a never-say-die attitude," is the secret of their
success.

Both entrepreneurs had put in a lot of effort to make WOW Momo a

success. They began with an idea, and that idea has now spread
throughout the country. Their commitment to their work and
enthusiasm for their goal has served as an inspiration to others. Their
success is based on constant product creativity.

When the brand's founders first started the company, they didn't give
much thought to failure. Their primary goal was to be successful. As a
start-up entrepreneur, it is more important to believe in the idea and its
success. Even with minimal resources, to begin with, the brand has
shown that creativity, commitment, and confidence can propel anyone
to success.

• Funding
To date, WOW Momos raised a whopping $38million from the following
investors:

1. Tiger Global

2. Bandhan Bank
 3. Indian Angel Network

4. Lighthouse funds

5. Anicut Capital

Conclusion

Wow Momo is a prominent fast-food chain in India, specializing in

momos (dumplings). The company's success can be attributed to
its innovative menu, cost-effective pricing, strategic locations, and
efficient operations. It has gained popularity among customers,
contributing to its growth and expansion. However, for specific
and detailed conclusions, it's best to refer to up-to-date business
reports or studies as my knowledge is limited to information
available until J anuary 2022.