Wow Momos! | Startup With No Capital | Startup Story | Know What They Do ? | Checkout Here Interview
Are you a college student, or a fresh graduate who is fed up with his job and wants to start a business of his own. Do you want to know how to start a business with no money or how to start a business in college ? Many also think that they can earn money online or earn from home if they start a business. But is this approach right ? Is starting a business with no money possible ?
Sagar was just another kid struggling with numbers and calculations when a simple idea possessed him – If people can sell pizzas and chicken, why can’t an Indian company sell good, branded food – Momos ? Thus, started his journey from next to nothing capital to now running hundreds of outlets across the country at a valuation of 250 crores!
When Sagar and his friends were in college they used to do late night studies and in that period they were trying recipes such as Maggi, Pasta, trying Dominos Oregano to make Maggi, Garlic Bread, Toast, etc. A lady in their school used to come and sell momos. They used to call her ‘Momo Aunty’. Those momos were so fascinating which gave Sagar a confidence that good quality momos can sell. They considered, that brand like Dominos and KFC can play with Pizzas and Chicken why can’t we play with Momos, that’s how the idea of Wow! Momos came in, Sagar says. With the view in their hearts Sagar Daryani and Binod Homagai co-founded ‘Wow! Momos’ at the age of 21 with an investment of Rs. 30,000 while awaiting their college results of last year. The vision from day one was, if brands like Dominos and KFC can come from abroad to India, lets create an Indian brand which can go from India to abroad and that’s how Wow! Momos started with a small and humble beginning.
Sagar says, if you are launching a startup in India you must know one thing ‘jugaad’ (managing things from somewhere and somehow). They approached Spencers and used the shop-in-shop format, (because by this they didn’t had to do flooring, ceiling and were getting free electricity) and get started with a nice good looking 6*6 kiosk.
At 6 in the morning, Sagar used to take his bicycle and use his father’s garage to prepare the momos. That same chef which was getting paid 3 thousand then now draws a salary of more than 1.5 lacs a month. Coming to the point, at that time they didn’t had a permanent employee or even money to print leaflets. Then, they used to cut a one momo in three parts and give it to taste to the people in Spencers, because they believed in their product and knew that, person once tasted their product will definitely be with them forever. That’s how the journey of Wow! Momos started with some amazing numbers from a small kiosk. They had a brand called Furies beside them, and matched the numbers which made Spencers feel these guys were doing well. Then they gave them South-city Spencers. The South-city Spencers actually made them a brand because from a 90 sq. ft. kiosk they started making sales of 7-9 lacs a month. By bootstrapping they grew higher and in 2015 they had 43 stores and 19-20 crore turnover, without any equity or debt funding. Customers were our biggest investors, he adds. They believe, money needs to make money.
Next, they went for the first round of equity funding and raised INR 10 Cr. from Indian Angel Network at a valuation of 100 crores. Before funding they were serving in five cities and after getting the funds decided to enter into Mumbai and Delhi NCR market. Mumbai and Delhi are supposed to have highest rental costs in the country and as they had funds now, they entered over there and it turned out a big boom for Wow! Momos. From March, 2015 to March, 2017 they again raised 44 crores in Series B funding round at a whooping valuation of 250 crores. As of 2019, they have extended at more than 13 cities, 155+ stores and 3500+ plus team.
What made them really Wow ? When they begin the journey other people were serving steam momos, largely available in veg or chicken. So, they came up with varieties of momos. They had Chicken and Cheese, Chicken and Schezwan, etc. in non-veg and in veg they had Paneer, Mushroom Cheese, etc. but that was the beginning, Sagar adds. Then they came up with Pan Fried momos – with Momos especially prepared and tossed with different sauces. The Schezwan sauce, Tomato-Garlic sauce, etc. and this products actually made them a brand.
Now the challenge was converting a snack into meal. They were hustling to make it happen. Thereafter, they launched Momo Burger called ‘Moburg’. Where they stuffed two pieces of fried momo between the burger bread with red schezwan and green coriander sauce with mayonese. And when you add in your momo 75 bucks you get a Pepsi with your meal and you can carry it in a tray. So they successfully managed to covert a snack into a meal.
When they entered in Bangalore in 2011 the real estates price were high and they were entering in premiere mall called Phoenix City Mall competing with Dominos, Subway, etc. Next they came up with Sizzler Momos where they serve 3 pieces of Steam Momo, 3 pieces of Pan Steam Momos with Rice Noodles and Curry, and this product started selling about 300 sizzlers on every weekend.
When they were entering in Delhi market, they thought about what Delhi people actually love and came up with fully packed Tandoori Momo and dessert along. Similarly, as they are expanding in different areas they are exploring various flavors. Not to forget, they launched a Mango Momo too in Summer season, and are still inventing various types for a single type of food.
Theirs one employees father was taking treatment for cancer in government hospital and unfortunately passed away. Since then they have decided to build 50 such hospitals which serves cancer patient. For this social initiative they separate 1 penny from every momo we eat.
This is how this startup is making crores by starting along with a small amount. You too have the potential. Keep checking us out for such inspiring startup stories. Do let us know your views in the comments section.