Finlatics IBEP Project 2021 PDF

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Essay written during Finlatics Invest Banking Experience Program 2021...

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FINLATICS- INVESTMENT BANKING EXPERIENCE PROGRAM PROJECT -1 Ans (a) According to me, the perfect combination of profile and idea for Arjun would be Engineering Graduate with MBA and experience in IT field, working on a food application like Zomato. The reason why I selected this combination for Arjun is because, for approaching any PE firm to invest in a start-up, you need to convince them regarding the potential of your proposal. A huge part of this depends on your business model, vision and mission of the start-up. Given, that Arjun is an engineer with experience in IT, just builds more confidence in the start-up which has a digital identity, not a physical identity. Any user would opt to use an application depending on the user friendliness of the app. Since Arjun has a background in Engineering, he can always fix or upgrade the User Interface Design keeping in mind what the customers would be anticipating from the application in terms of performance and feasibility, he can select the best payment gateways for secured payments, he can tackle and server related issue, he can put together a small team of reliable and hardworking engineers from his own exposure to such people through his job experience and engineering college. The better the IT team, the better lesser would be the chances of technical glitches, which would impact the perception of his start-up in the mind of a consumer and impact his sales in a positive manner. Moreover, MBA exposure can help him with better management skills, better people skills, more knowledge about the market, better understanding towards building a good business model, vision and mission statement. CHALLENGES: (a) Onboarding Street Vendors: The first step would be selecting ideal street vendors, and for this, Arjun can put together a small team to select some famous vendors who have already captured a good amount of market. He can attract these vendors by providing them with affordable packaging that looks high quality, training them more, empowering them to be financially self-sufficient, and explaining to them how they can cover a broader radius. (b) He can hire more delivery executives by explaining to them the payment structure, incentives provided for working at night or during bad weather and by targeting under grads or locals from specific localities who know the area very well. (c) I can assume that Arjun did his MBA in Operations and learned about marketing in his MBA 1 st year which would have helped him to gain more insight on running his start-up. Under Operations, he must’ve learned about various cost minimization methods relating to Job costing, Contractual costing, Budgetary control, and absorption costing methods which could help in great lengths to devise strategies which would make sure that his company is able to meet their operational and necessary costs efficiently while also achieving their targeted profit margins.

Ans (b) Arjun’s primary need for raising funds is to grow his start-up by accelerating his sales. His primary emphasis would be on the following benefits associated with funding: (1) Financial Benefits: For a business in its growth stage, the primary need would be funding, so it can be allocated to various segments such as advertising, payments and incentives to delivery partners, IT development cost, app maintenance cost, and so on. Not only so, the financial infusion would also help the start-up to lower its debt ratio, focus more towards the growth without worrying or feeling pressurized about publishing quarterly reports. (2) Advisory Benefits: The right Private Equity firm can help Arjun to meet experts who would know better about the growth and expansion of a start-up. They can help Arjun lift up his start-up and achieve more targets. Since Arjun can get Network benefits from his college mates and colleagues, I think advisory benefits from field experts would help Arjun a lot in his journey....