Kyt Ventures invests in QSR momo brand, Zomoz’s $2M funding round
- ByStartupStory | May 3, 2023
Zomoz, India’s second-largest QSR momo brand, has raised $2 million in its ongoing bridge round, led by global angel network Kyt Ventures. The funding round saw the participation of prominent angel investors and family offices, including Rebel Food, which previously participated in the mop-up. The Hyderabad-based startup plans to use the funds to increase production capacity, launch new brands, expand its footprint in existing and new Tier 2 and 3 cities across India, and grow internationally, starting with 13 outlets in the United Arab Emirates.
“The demand for authentic momos has been growing steadily over the past few years. As a brand that is solely focused on serving high-quality momos, we are uniquely positioned to capture a significant share of this market. We are aiming to clock Rs 3 crore in monthly sales by year-end while achieving company-level EBITDA profitability by July 2023,” said Shouvik Dhar, founder of Zomoz.
Zomoz has a presence in 68 locations via its 14 retail outlets and 54 cloud kitchens across seven cities, including Hyderabad, Bengaluru, Mysuru, Pune, Mangalore, Chennai, and Mumbai. The startup aims to run 90+ operational outlets across India in the next 8-12 months. Zomoz’s competitors include market leader Wow Momos, as well as Momo Monk, Momo Zone, and Momo King. However, CEO Shouvik Dhar is confident of leaving a dent in the momos market.
“We are well-positioned to disrupt the market due to our centralized production, leading to consistent taste and quality reflected in its ratings; frozen model, ensuring zero wastage and no dependency on skilled staff at the outlet; and our capital efficiency in terms of returns generated against the CAPEX required per outlet. By combining operational and capital efficiency, we are confident that we can touch Rs 100 Cr ARR faster and with less investment than any of us before,” said Dhar.
Kyt Ventures Co-Founder Dr. Anu Gupta said, “It’s been a pleasure investing in a fellow ISB alumnus’ venture, which is built on solid business fundamentals. Zomoz is at a sweet spot in its business and presents a promising opportunity for its investors. The company has seen significant growth in the past few years and is now closer to breaking even, which makes it a lucrative investment opportunity.” Kyt Co-Founder Gagan Gupta added, “We believe in their vision and are confident in their ability to capture a significant share of the growing momo market. With our investment, we aim to support Zomoz’s expansion plans and help them achieve their goal of becoming the leading momo brand in India and beyond.”
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