Case studies

Upon completion of the case study, student will be able to discuss valuation of new-age ventures and understand how it is different from the valuation of organisations with a longer history; analyse the considerations (quantitative and qualitative) while evaluating investments in new-age ventures; and develop a framework involving the various dimensions of investment readiness.

The fintech space in India has seen an upsurge of activities since 2016. The growth of Paytm, RazorPay and many such ventures and the drastic improvements in this ecosystem have been significant catalysts for this segment of new-age tech companies. Funding and valuations have seen a sharp increase, especially when businesses worldwide felt the after-effects of the pandemic, with India being home to a large number of unicorns, second only to the USA. Open Financial Technologies Ltd (OPEN TECH) is one such venture that claimed its spot as the 100th unicorn of India within a span of five years since inception. With a strong focus on disrupting the banking sector in India, this neo-bank aspires to be the equivalent of Stripe in India and eventually be a strong competitor in the international market.

Richard O’Neil is an active investor in the fintech space, based out of the UK, and he is currently looking to expand the market by considering investment options. In the process, Richard and his team have identified India as a viable and competitive market, as new venture support and funding are increasingly emphasized through policies such as Startup India, Make in India and many such more to sustain and propel its benefits. As the team was exploring ventures worth investing, Open Financial Technologies caught their attention. However, Richard, given his experience across fields and being a seasoned private equity investor, realised that valuing new-age companies is as much an art as it is a science. Multiple quantitative and qualitative aspects need to be considered while relevance of traditional valuation techniques to put a value on such entrepreneurial ventures is questioned. At this juncture, he finds it crucial to evaluate the investment readiness of OPEN TECH.

This case allows students to understand how valuation of new ventures is different from that of established companies and analyse the crucial factors worth considering while evaluating an investment proposal as a venture capitalist, which eventually helps shape the funding pitch of an entrepreneur in the space.

This case study can be useful for students undertaking graduate- and executive-level courses on business valuation and strategy and entrepreneurship, as well as entrepreneurial finance elective at the undergraduate level. One could use this case in courses on entrepreneurship and innovation, such as an introductory course on entrepreneurial finance and a course on venture capital and private equity. It also allows discussion on fintech and neobanking and the valuation of privately held companies.

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This case aims to introduce students to the social sector financing (internal and external) landscape, and its nuances. It specifically provides material to enable critical evaluation and decision-making around financing a for-profit social enterprise and its associated challenges.

The case highlights the fundraising options available to a social enterprise in an emerging economy like India. EnglishHelper Technologies Private Ltd. (EH) commenced operations in 2011 as a subsidiary of its parent Boston-based company, to provide technology-based learning solutions primarily to the underserved segments of the country’s population. Sanjay Gupta, co-founder and CEO, EH Inc., wanted to explore funding options suitable for the company’s next growth stage. The existing funding sources of equity from its parent company, grants and revenues (mainly from product sales to government schools) had worked well for EH in the initial years of its growth. But its financial performance was being impacted, and, additionally, further scaling up would require sources that could give a much larger quantum of funds and add support to EH’s operations. EH would also need to revisit its revenue model to strengthen its financial sustainability, by drawing lessons from the other prevalent ones in the ed-tech sector and make it more effective. The case encourages students to assess the various funding alternatives, internal and external, for a social sector private company with a for-profit model like EH, to enable it to achieve its scaling-up plans while serving its social mission.

The case is relevant for both undergraduate and postgraduate students and can be used in business administration programs.

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After working through the case and assignment questions, students will be able to recognize essential considerations for the initial public offerings (IPO) decision, compare different types of fundraising options for startups, evaluate the free pricing regime for IPO pricing, examine the pricing process of IPOs, explore the issue of valuation of IPOs and assess the decision choices of the founder regarding IPO given the trade-offs and market conditions.

The case study explores the dilemma of Ghazal Alagh, the co-founder and chief innovation officer of Mamaearth, a direct-to-consumer babycare and skincare unicorn, regarding its IPO decision. Mamaearth had filed the draft offer document with SEBI in December 2022, and Ghazal was busy engaging with the investment bankers for the upcoming IPO. However, the weak market sentiments and shelving of IPO plans by many startups were forcing her to think about facing the possibility of postponing the IPO or continuing the IPO process but at lower valuations. The case study provides an opportunity to explore a startup’s financing choices. It allows for discussion of various IPO challenges from the perspectives of founders, venture investors, regulators, investment bankers and new IPO investors.

This case study is best suited for senior undergraduate- and graduate-level business school students in courses focusing on entrepreneurship, corporate finance, financial management, strategic management and investment banking.

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After completion of the case study, the students will be able to understand ABC analysis and develop a systematic approach using PDCA, analyze processes, technology, employee training and supplier relationships when analyzing shrink and developing solutions, evaluate how technology improves production inventory control and visibility and recognize the importance of fostering a culture of employee accountability and ownership to minimize inventory loss and improve overall operational efficiency.

On June 2, 2023, sitting in his office in Karachi, Pakistan, Khan Aamir, the manager of store and inventory at Euro Manufacturing, found himself immersed in a cloud of confusion. The incessant loss of inventory items, particularly the nut bolts and small accessories, had become a perplexing challenge. To address these losses and provide a cycle count report to the director of supply chain, Aamir, manager of store and inventory, was given the responsibility to take action. He was looking for a comprehensive approach to address the current problems and prevent further losses in the future. This case study examines the various reasons for the losses, including theft, inadequate inventory control methods, human error and problems with suppliers. It highlights the importance of established procedures, the use of technology (such as barcode scanning, radio-frequency identification tagging and inventory management software) and the cultivation of a culture of accountability among employees.

This case study is developed for class discussion in the course of operations management or supply chain management. This case study is suitable for use with undergrad students. This case study can be taught in a module on operations management or supply chain management, as part of a broader course in business management or industrial engineering.

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This case study is designed to enable students to understand the demand for flexible containment products in India, understand the need for a joint venture (JV) with an international company, assess Agastya Inventions Private Limited’s (AIPL) cost and benefits of acceptance of the JV offer, evaluate the growth possibilities in the Indian biogas sector, and conduct the valuation of AIPL for its better positioning during the JV deal.

The case study is about the dilemma faced by Prantik Sinha, co-founder and director of Indian company AIPL, to accept or decline a JV offer from a French industrial conglomerate Serge Ferrari Group SA (SFG). AIPL is a leading manufacturer and trader of biogas storage tanks, water storage tanks, airlifting bags, floating boom barriers, trash floating boom barriers and inflatable swimming pools. The company adopts business-to-business and direct-to-customer business models. It develops products as per clients’ specifications and their exact requirements. In 2022, SFG proposed collaborating with AIPL to market its biogas digesters in India and abroad. As per the partnership deal, AIPL needed to split its biogas digester portfolio and sell it to the proposed JV for a specific one-time value. Sinha believed that the JV was an opportunity to scale the business globally and would likely shape the company’s future. However, he was in a quandary about making a final decision on accepting the JV offer because biogas digesters remained the company’s highest revenue-generating product portfolio. It was against this backdrop, what would Sinha do to accomplish his business objective and protect the interest of the company? The case study highlights Sinha’s commitment to nurture and expand AIPL’s business in India and beyond. It provides ample scope for students to analyze the pros and cons of AIPL’s JV initiative with SFG and suggest whether the company can leverage this offer for business growth.

This case study is meant for MBA-level students as part of their strategic management and financial management curriculum.

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After completion of the case study, the students will be able to appraise the importance of different methods of location planning in warehouse selection, analyze the load distance values for warehouse location and choose the optimum location based on the load distance analysis.

DB Builders, a prominent Indian construction company, faced a crucial decision in selecting an ideal storage warehouse for a project involving 100 flats spread across five locations. Mr Vijay Kumar, an experienced material handling expert, was entrusted with this task as part of transitioning the company’s material allocation system toward centralization. Using practical travel distances, Kumar meticulously scouted four potential warehouse locations. The selection process hinged on three primary factors: load, distance to apartment sites, safety and cost of the premises, each carrying specific weightage. The project planning department provided scores for safety and cost, helping evaluate the options. This unique challenge arises due to varying material requirements across the apartment locations, demanding an efficient warehouse planning. The selection of the optimal storage warehouse holds paramount importance in facilitating the smooth execution of these larger projects. Kumar’s expertise and strategic decision-making are pivotal in ensuring a seamless transition toward centralized material handling, which is essential for the company’s future success.

This teaching activity is aimed at introductory/basic courses in Bachelors and Masters of Business administration.

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The primary objectives of the case study are to get the participants exposed to the issues of working capital which even profitable companies face on a day-to-day basis; give the participants an understanding of how to balance the, at times, conflicting objectives of increasing profits and sales through favorable credit terms; and expose them to the impact of increase in inventory levels and average collection period on margins in a period of slow growth. They will also learn about the concept of factoring and its uses.

The case study is about a group of companies engaged in education, steel fabrication and oil businesses owned by a single proprietor. The company was based in Fatehnagar which was part of Hyderabad district in the state of Telangana, India, and the case study traces the origins of the group from 1960s to 2021. The group was invested the surplus cash flows from the oil business to initiate and expand other businesses during this period. The economic downturn due to the COVID-19 pandemic had hit the company, particularly its oldest business – Noble Chemical Agency. The oil business was facing issues related to its growth and profitability, and the uncertainty around COVID-19-related restrictions had only augmented the fears of the management. The case study looks at issues and the dilemma which the owner of the company faced. The case study highlights various issues related to working capital management, especially related to receivables management and inventory levels faced by businesses during the slow-growth phase. It demonstrates how working capital management issues, if not resolved in time, can lead to insolvency of even a successful company with a sound business model.

The case study is meant for teaching in postgraduate management programs (Master of Business Administration and Postgraduate Diploma in Management) in the following courses: corporate finance/financial management course in the first year (the case study should be taught towards the end of the course); and management accounting courses in first year (the case study should be positioned in the middle of these courses). The case study can also be used to highlight issues related to working capital and small business management in a Management Development Programme (MDP) course for “Finance fundamentals for non-finance executives”.

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After completion of the case study, students will be able to learn, understand, examine and customize leadership styles per organizational culture; understand the conflict management styles of a female leader; and comprehend the organizational change process to devise an effective communication strategy.

Ever-changing business demands managers adopt organizational change in leadership styles, business processes, updated skill sets and minds. One must be ready to understand influential nurtured corporate culture and human resource resistance towards the inevitable change. This case study attempted to discuss the female protagonist dealing with an organizational conflict. The case study introduces one such protagonist from a century-old woman’s educational institution. Subsequently, this case study presents organizational change under the leadership of a female protagonist. This teaching case study gives the reader an insight into situational leadership, conflict management styles and the corporate change process by implementing an appropriate communication strategy. This case study describes the change process through the various decision-making scenarios that an academic institute over a century old faced during the post-pandemic crisis after adding a crucial protagonist. The employee union, followed by students and administrative employees, has challenged the dominating leadership position held by the college principal. Protests occurred due to the college administrator’s refusal to adjust her approach to leadership. This teaching case then provided different leadership styles of the current and old leaders. Finally, the case study lists the challenges a leader faces during turbulent times and the lessons a leader should learn from such situations while transforming the institute.

The teaching case benefits undergraduate students in business management subjects such as conflict management, leadership and organizational behaviour. Nevertheless, trainers can use this case study to teach seasoned managers and emerging leaders the significance of adopting and implementing change while understanding situational leadership.

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After completion of the case study, the students will be able to understand the different risks associated with a business, focusing on price risk and the importance of price risk management in business; understand and evaluate the products available for hedging price risk through exchange-traded derivatives in the Indian scenario; and understand and evaluate the different strategies for price risk management through exchange-traded derivatives in the Indian scenario.

The case study pertains to a small business, M/s Sethi Jewellers. The enterprise is being run by Shri Charan Jeet Sethi and his son Tejinder Sethi. The business is located in Jain Bazar, Jammu, UT, in Northern India. The business was started in 1972 by Charan Jeet’s father. They deal in a wide range of jewelry products and are well-established jewelers known for selling quality ornaments. Tejinder (MBA in marketing) was instrumental in revamping his business recently. Under his leadership, the business has experienced rapid transformation. The business has grown from a one-room shop fully managed by Tejinder’s grandfather to a multistory showroom with several artisans, sales staff and security persons. Through his e-store, Tejinder has a bulk order from a client where the client requires him to accept the order with a small token at the current price and deliver the final product three months from now. Tejinder is in a dilemma about accepting or rejecting the large order. Second, if he accepts, should he buy the entire gold now or wait to buy it later at a lower price? He is also considering hedging the price risk through exchange-traded derivatives. However, he is not entirely sure, as he has a few apprehensions regarding the same, and he is also not fully aware of the process and the instruments he has to use for hedging the price risk on the exchange.

The case study is aimed to cater to undergraduate, postgraduate and MBA students in the field of finance. This case study can be used for students interested in commodity derivatives, risk management and market microstructure.

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The case study is designed to help students understand how the “growth at all costs” attitude can lead to compromised corporate governance in a start-up leading to disastrous implications for all the stakeholders. This case study aims to make students understand the components of the fraud triangle, the impact of financial fraud on various stakeholders, the role of venture capitalist (VC) investors and the importance of good corporate governance in start-ups. The case study presents an excellent opportunity for students to discuss the consequences of ignoring good governance in the pursuit of growth in a start-up. After analyzing the case study, the students shall be able to explain the concept of the fraud triangle and to be able to identify the motivation, opportunity and rationalization of financial irregularities in a start-up; analyze the impact of financial irregularities on various stakeholders; comprehend the business model of VCs and evaluate its influence on VC-funded start-ups; and appraise the importance of good corporate governance in start-ups.

The case study revolves around the confession of financial irregularities made by one of the cofounders of GoMechanic, a start-up headquartered in Gurugram, India. On January 18, 2023, Amit Bhasin confessed to financial irregularities in the company’s financial statements, leading to laying off 70% of the workforce of the company. GoMechanic had earlier raised close to US$62m [1] from maverick global investors including Sequoia Capital, Tiger Global, Orios Venture Partners and Chiratae Ventures, and was negotiating to raise Series D financing from the Japanese multinational SoftBank with aspirations to be a unicorn (start-up with a valuation of over $1bn). The confession led to a debate about the consequences of the “growth at all cost” culture being followed by start-ups as well as VCs. GoMechanic was not an isolated instance of a lack of governance in the start-ups. The confession had consequences not only for the GoMechanic but for the entire start-up ecosystem of India, which was the third largest in the world. Bhasin stated that the founders take full responsibility for the situation, and they were working on a plan which was most viable under the circumstances. However, it was not going to be easy to regain the confidence of the investors.

The case study is best suited for senior undergraduate- and graduate-level business school students and in executive education programs in courses such as corporate governance and ethics, private equity and entrepreneurial finance.

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