Finlatics
INVESTMENT BANKING EXPERIENCE
PROGRAM
Project 1
Arjun’s Driving Force
Arjun is a Commerce graduate with no prior working experience but is extremely passionate
about his idea is an avid lover of street foods and has created a Zomato type application that
lets consumers order through safe and hygienic street food vendors. Currently, the application
is operative only in the city of Mumbai. Though he knows that he is targeting a mass market,
he knows how competition can be massive. the start-up idea would be most successful with
proper idea combination an also the profile of arjun best fits it though h has no prior working
experience but is passionate about his idea being a commerce graduate he can manage all the
accountability related to the idea of creating an application like Zomato
A Similar Story
One of those examples, as we know about the Zomato application the start-up, Foodie bay
was initially started in Delhi and then its services were extended to cities like Mumbai and
Kolkata. The number of customers using the application has seen a constant Northward
journey with every passing year. Hereafter, Foodie bay was modified as 'Zomato' to make it
more bewitching, simple to memorize and also to eliminate the confusion with the website
eBay. As the usage of this Zomato has seen a phenomenal upsurge, the founders of Zomato
decided to simplify the access of the application for the users. Then a mobile app was built to
benefit the people and to make access easy for the users. However, innovation demanded
more funds. The founder of the notable job search engine Naukri Sanjeev Bikhchandani was
fascinated by Zomato, and he started to invest in the project. Other financiers of this company
include Sequoia Capital, Vy Capital, and Temasek. So, in this way Zomato kept on growing,
these sparks hope of Arjun, as one does not need to be an engineer or have an MBA to be a
founder.
Conclusion
As a founders of Food app, Arjun should consider that hiring the correct persons is the
primary reason for their company's startling growth and moreover, it was also the greatest
hurdle encountered by them while building the Food application like Zomato. Mobile app
development these days has become the growth-driver for any kind of business which will be
the key factor while developing the app.
Challenges encountered
The most significant hurdle which can be faced was to find a way to cover all the areas in all
the pivotal cities so the people who hinge on them do not fail to miss the finest restaurants
and also Other key challenges that Arjun is facing in this company are that of onboarding
more street food vendors, hiring more delivery executives; while keeping costs low. This
complication will be seen in the present in the initial stages and endures to be a hurdle also
The business models
• In the early stages, the founders should not focus much on earning money and when
the website will start to attained huge applause, other business will recognize the prospects
associated with it. By observing these benefits, many restaurants will then start placing
advertisements through which it can get huge revenue.
• It can also make easy for their customers to pay for the charges digitally by launching
cashless transaction.
2. Unlike loans, private equity offers more than just capital to firms, It is a clear value
addition to the company through several other variables such as stamp of quality, network
driven benefits and advisory benefits. Given the chosen profile-idea combination,
I believe Arjun’s primary focus should be on advisory benefits. Hard Knowledge Arjun can
fill his technical knowledge gap using various sources available online but he evidently lacks
experience. Having an investor, who is also a mentor with certain experience in the same
industry can help Arjun scale up his startup. A mentor can help him navigate the turbulent
waters of the tech startup with hard knowledge. This may consist of payment statistics,
ensuring compliance and security, building user management models amongst others. Besides
the development of the product, the mentor can also help with currency hedging. With the
help of an experienced mentor, Arjun can learn various approaches that can be used to
mitigate this risk.
Soft Knowledge Arjun not only needs a skilled team but also an effective and an efficient
team and this requires him to possess top-notch management skills. Creating a strong
organizational culture means setting values and goals, aligning teams & building reward
systems. This is not a child’s play as these skills come with corporate experience. Arjun can
compensate for his lack of corporate experience by using the expertise of a mentor who can
counsel him on how to manage a team, negotiate with players and lead the company. Arjun
can also reflect on his personal development using constructive feedback from his mentor and
create a plan of action for improvement that would align with the company’s objectives.
Seeking advice is central to effective decision making and for a fresh start-up it is essential
for shaping the present and the future of the company. A combination of this hard and soft
knowledge can act as a binding force for a flourishing start-up and help Arjun expedite his
journey to success. Hence, Arjun’s optimum PE Investor would be an individual with
experience in this domain and can act as a mentor to him, by imparting both hard and soft
knowledge as the nature of the domain is quite complex and this is the reason advisory
benefits are most important for Arjun.
