Wow! Momo’s Next Leap, BYJU’s Sorrows, and Starlink’s Debut

Wow! Momo is back in the news, this time for raising ₹85 crore in debt from Stride Ventures (a Venture Debt fund) - this debt financing seems to be a standard debt instrument, not convertible notes. For a company that began with a single kiosk in Kolkata in 2008, this is a strong signal that it’s aiming for something big. But raising money through debt comes with its own pressures. Therefore, it’ll be interesting to see how Wow! Momo utilizes it.

Wow! Momo isn’t just one brand anymore. It now includes Wow! Momo, Wow! China, and Wow! Chicken. From roadside-style steamed momos, they have moved into biryani bowls, noodles, and even chicken wings. They’ve also expanded into cafes, cloud kitchens, and FMCG products like frozen momos (sold in supermarkets).

They have more than 630 outlets in 40 cities, and they’re targeting ₹650 crore in revenue this year. They also have marquee investors backing them, including Tiger Global, Bandhan Bank, and Stride Ventures.

Wow! Momo has now taken on institutional debt from Stride Ventures, after previously borrowing from banks like Bandhan Bank. Debt funding is not bad in itself - it is often used to avoid dilution. But it also comes with obligations: interest payments, tighter cash flow management, and pressure to hit predictable revenue. That’s difficult in the food business, which has thin margins and seasonal demand.

And growing fast in India’s food business isn’t easy. Real estate costs, operational consistency, and managing staff at scale are huge challenges. Wow! Momo’s last reported revenue in FY23 was approx ₹435 crore, and a loss of ₹113 crore. That means they’re burning money to grow, and now they’ve added the burden of repayment too.

Many fast food chains in India today are not just expanding to serve more customers. They’re also doing it to become attractive for future acquisitions. We’ve seen this play out with Biryani By Kilo, which expanded aggressively before selling a majority stake to Devyani International. Haldiram’s, too, has been in multiple talks for funding and partial exits - it sold 9% stake to Temasek in 2025. Is Wow! Momo eyeing the same path?

The company’s new formats, its push into FMCG, and its rapid expansion strategy may be part of a long-term plan to become a well-packaged acquisition target. But growing just to be acquired can lead to shortcuts, over-extensions, or neglecting profitability - something which is common in other startups.

Also, competition is fierce. The Indian QSR market is getting crowded, with players like Biryani By Kilo, Faasos, Behrouz, and new-age brands backed by Rebel Foods, Curefoods, and others. Then, there are global giants like Domino’s, KFC, and McDonald’s. Wow! Momo has to stand out in this competitive QSR market.

Another challenge is brand identity. While Wow! Momo is widely known, its sub-brands like Wow! China and Wow! Chicken don’t have the same recall. Managing multiple cuisines and formats is hard, and even giants like Jubilant FoodWorks (Domino’s) have struggled while diversifying.

We think Wow! Momo has built something impressive. But now it needs to careful while expanding profitably. We think, they should:

1. Prove profitability at scale, not just top-line growth.

2. Ensure consistent quality and service across outlets.

3. Grow new brands slowly and test thoroughly before going national.

Wow! Momo has ambition, and now it has money. How they execute in the next two years will determine whether it becomes India’s first true home-grown food chain to rival global QSR giants.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Ye Kathin Drishya Hai”: BYJU’S-Owned US Firms Sold At Knockdown Prices

The recent sale of BYJU’S-owned US firms paints a troubling picture for the edtech giant. Tynker has been sold to CodeHS for a mere $2.2 million, a stark contrast to the $200 million BYJU’S originally invested.

Similarly, Epic! was acquired by TAL Education Group at a steep 81% discount, fetching only $95 million compared to the $500 million spent just a few years ago.

Read more here

“America Se Aaya Mera Dost”: Starlink To Debut Monthly Subscriptions At INR 3,000 In India

Starlink is set to make its debut in India with monthly subscriptions priced between INR 3,000 and INR 4,200. The satellite communication service, owned by Elon Musk, will require customers to invest in a Starlink kit, which includes a satellite dish and a Wi-Fi router, costing around INR 33,000.

To make access easier, the equipment will be available at retail outlets of major telecom operators like Airtel and Reliance Jio, which have partnered with Starlink for distribution.

Read more here

“Sapne Surile Sapne”: Meesho Converts Into Public Entity In Run-Up To IPO

Meesho has taken a big step towards its IPO by converting from a 'private limited' to a 'public limited' company.

The company has also applied to the National Company Law Tribunal to move its domicile back to India from the US, just in time for its listing. This shift could really boost its local presence and attract more investors as they prepare for the public spotlight.

Read more here

“Janmo Ke Saathi”: Zee Invests In Content Startup Bullet To Enter Microdrama Universe

Zee Entertainment is diving into the microdrama scene by investing in content startup Bullet, aiming to tap into the booming 60-second content trend in India.

The strategic equity partnership shows Zee is making a deliberate move into the burgeoning microdrama space, a segment that has already seen immense growth in China.

Read more here

1. Wow! Momo has secured INR 85 Cr in debt funding from Stride Ventures to fuel its expansion plans for the dine-in vertical. Despite a net loss of INR 114.4 Cr in FY24, the Kolkata-based QSR chain is gearing up to grow its presence in the market.
   Read more here

2. Former ShareChat executives' microdrama app Flick TV has raised $2.3 million in a funding round led by Stellaris Venture Partners. The fresh capital will help scale content production and launch offerings in four regional languages.
   Read more here

3. CRED has secured $72 million in a down round from GIC and others, bringing its valuation down to $3.5 billion from $6.4 billion in 2022. This fresh funding, raised entirely as primary capital, reflects the shifting landscape in the fintech sector.
   Read more here

4. Rapido has raised INR 125 Cr from Nexus Venture Partners as it prepares to launch its food delivery service, 'Ownly.' This funding follows earlier reports of the ride-hailing giant seeking INR 250 Cr from Prosus.
   Read more here