How to Start a Business with no money? | Case study of Wow! Momo



The biggest trend driving change in the food and beverage industry right now is TRANSPARENCY. Consumers want to know and understand what ingredients are going into their products, which is why we are seeing so many innovative products with shorter ingredient lists.

HOW TO START A BUSINESS WITH NO MONEY?

This question arises everytime when we think about starting a business. In this article I will keep in mind to answer this question with a successful case study. I will try to cover all the facts and figures of Wow! Momo and with the help of numbers you will understand that it is not tough to start any business with no or with very less investment.
As some people require a very huge investment for their business and they just wait to get the huge amount to start any business. It means there is some flaw in their business model or they are not investing their time to make their business model correct. 
Wow! Momo is a great example of  doing the business and succeeding in it with very less amount of money. So without wasting any time lets jump to the case study of Wow! Momo and try to understand the business.

CASE STUDY OF WOW! MOMO

Co - Founders

Sagar Daryani(C.E.O)
Binod Kumar Homagai(C.O.O)

Initial Budget 

₹30,000


The Starting Story

When Sagar and Binod were in the final year of their graduation at St. Xavier's College, they were sure that they would not pursue MBA. And due to low capital they thought that there is some other way to build the brand is the product itself.
So, in starting they started making steamed momos and approached supermarket chain Spencers for a small stall inside the supermarket.
They also made the yellow colored t-shirts because yellow color is very bright and people will get attracted to the color. If they will not attract, atleast they will notice them. Sagar wore the Wow! Momo t-shirt and approached every customer inside the supermarket to sample the momos.
Then they experimented with different kind of momos by giving them Indian Flavour which become the USP for them. Sagar managed to get a part-time chef from a small restaurant Ramji KC for ₹3,000 a month, and now he became the head chef of Wow! Momo with a salary of ₹1.5 lakh per month.

On the first day their sale was of ₹2,200 and at the end of the month their sale became ₹53,000.

Sagar woke up at 5:30 to buy fresh vegetables and chicken and put their momos in a hot case so they will remain fresh. While coming back to home in evening, they insure that they would not use any vehicle and would  walk as it save a lot of money. And as short of money they avoided leaflet printing and they started market their product on their own by giving sample of momos.
As their sales were good spencers shifted them to the biggest supermarket in kolkata, and they claimed that their sales started increasing from ₹53,000 to ₹9 lakh.
They hired more people and started investing in R&D Department.
In 2010, they opened their first outlet in Kolkata with investment of ₹14 lakh.
After experimenting more and more type of momos they introduced momo burgers, i.e moBurgs. And they also started serving full meals.
As their numbers started increasing day by day, they also approached Big Bazaar and pantaloons, and now they have 250 outlets in 13 cities.


Business Model of Wow! Momo

  • Value Proposition - It consist of the products or services any business offers, value to the customer and also unique features which give a competitive advantage in the market. As Wow! Momo constantly introducing new variety of momos in their menu. And they also carried 'Chocolate Momo' in their menu for dessert.
  • Target Customer Base - They capture both Gen-Z and Gen-Y. In bulk they have customers of Gen-Y as they are young students and working professionals.
  • Outlet Formation - The stores or outlets of Wow! Momo are available in 4 different formats - Kiosk, Food Courts, High - Street restaurants and High - Street Shops.
  • USP(Unique Selling Point) - They offered very innovative and hygenic fresh momos which acted as a good USP for Wow! Momo. They have both veg and non-veg momos.
  • Expansions - They always continue expanding, as after successful launch of Wow! Momo they also launched Wow! China. They are opening both Momo and China outlets. They aim to have 300 - 400 outlets by 2020 and also the turnover of ₹300 crore in terms of revenue.

Talking about Numbers and Figures

  • Wow Momo Foods Pvt. Ltd. incorporated on 26th March, 2015.
  • In 2015, they got seed funding of ₹10 crore by IAN, and with that money they started building good team management.
  • In 2017, Wow! Momo received Series B funding of ₹44 crore by Lighthouse Funds.
  • In 2018, Series C funding went successful of ₹3 crore by William Bissell.
  • In 2019, they also received a Series D funding of ₹2.8 crore by Tiger Global Management.
  • They will close 2019-2020 with around ₹200 crore and they have a target to ramp it to ₹1000 crore in next 5 years.
  • They have a shared capital of ₹3,72,58,020 and a paid up capital of ₹3,56,77,020.
  • Board of Directors - 5.
  • EBITDA(Earning Before Taxes, Interest, Depreciation and Amortization) - Increased by 88.17% over the previous year.

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