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This case study is related to start-up post-listing investment analysis. Through this case study, students will be able to perform the business analysis guided by the Venture Evaluation Metric tool, perform financial analysis using the discounted cash flow methods and perform investment analysis recommendation with justifications from the business and financial analysis performed above.

This case study sets out the study of a scalable start-up, Zomato, which is a successfully listed start-up firm in India. Despite the start-up development success in the pre-listing, the firm has exhibited a continuous unprofitable finance performance in the post-listing and has further experienced a volatile share price performance, both of which have puzzled existing and potential investors. In addition, some analysts are in the opinions that the firm share price valuation have been inflated with overvaluation since in the initial public offering stage and remain traded with overvaluation in the market. Notably, considering the negative indicators mentioned above, investors are concerned about long-term sustainability of the firm business and financial performance. In the context of post-listing investment, the following questions are material to investors: What is the realistic growth trajectory for Zomato in the medium term? What is Zomato’s share fair value in the medium term? Can one see opportunities or risks ahead of investing in Zomato’s shares? What will be the investment strategy for new investors?

This case study is suited to bachelor’s and master’s level in business schools studying entrepreneurial finance analysis.

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CSS 1: Accounting and finance.

The case study offers interesting learning possibilities and offers the following learning opportunities to the learner. assess and conduct a macro- and micro-environmental analysis, comprehend the nature of the competitive landscape and how it changes when one looks at a digital-only versus an omnichannel marketplace, examine the product mix and policy of the firm and evaluate how it delivers customer value and analyse the pros and cons of growth strategies available to a firm and arrive at a viable and actionable future business and product strategy.

The short case study presents the story of a young start-up called Country Delight. The firm began operations in 2011 and was the brainchild of Chakradhar Gade and Nitin Kaushal. The direct-to-consumer firm addressed urban consumers’ non-articulated, latent need to get “fresh and uncontaminated” milk to their doorstep. Country Delight delivered farmer-to-consumer fresh cow and buffalo milk and milk products based on a well-designed and efficient value chain where the supply chain was either wholly owned or quality monitored by the firm. The firm began operations in India’s National Capital Region and was spread across 15 metro cities. Slowly, over the years, Gade and Kaushal added more product categories.Country Delight had a subscriber base of around 500,000, and the ambitious duo wanted to double their subscriber base and reach one million subscribers by financial year 2025. The firm was looking at various paths to achieve this number. Should Country Delight expand into new geographies? Or look at adding to the existing product portfolio? Diversification into agritourism, like the Pune-based vineyard – Sula, also looked attractive to build consumer engagement. Would taking the consumer to the farmers from whom they sourced the milk and vegetables contribute additional revenue to Country Delight and their farmer-suppliers? As the firm got ready to raise another round of funding, it needed a well-articulated growth strategy that was exciting and profitable for all stakeholders.

This case study presents the dilemma entrepreneurs face as they look at the next phase of growth. Thus, this case study serves as a learning opportunity for a graduate-level course in management and as a sounding board for those who aspire to enter the start-up space. Though this case study has the potential to illustrate basic concepts such as value chain and macro- and micro-environment analysis, the protagonist’s dilemma and the problem statement make it apt for integrated discussions that are critical in advanced electives in marketing management.

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CSS 8: Marketing.

This case was researched using publicly available sources, including Mercury Systems financial filings and press releases, news stories about the seasoned equity offering, financial information from Bloomberg and industry information from IBISWorld Industry Reports and articles related to seasoned/secondary equity offerings, intangible asset valuation and the use of revolving lines of credit. Quotes are taken from Mercury financial reports and press releases and express the (optimistic) opinions of company executives.

Mercury Systems, a technology company in the aerospace and defense industry, announced a six million share seasoned stock offering in June 2019. This resulted in a 6% stock price decrease. A stock price decrease is a typical event when a firm announces the issuance of new common shares, but with Mercury Systems, there were concerns about how much money the firm needed to fund its strategy of growth through acquisitions. If internally generated funds were not sufficient, should the firm issue debt or have another seasoned equity issue? Students will look at the objectives and success of the most recent seasoned equity issue, determine future funds needs and how the firm should finance these needs.

This case is appropriate for undergraduate and graduate students in corporate finance electives. Typically, topics such as seasoned equity offerings are not covered in introductory courses, so this is recommended for finance electives. Even in advanced finance courses, sometimes there is insufficient time to cover seasoned equity offerings.

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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CSS 1: Accounting and finance

This case study is developed using secondary sources, including newspapers, periodicals and academic references.

This case study examines the challenges of a market leader in a changing industry and how that leader might respond. Growth was becoming exceedingly difficult for Netflix due to various external forces. For a company that relied on radical innovation to reinvent the video market industry and gain market dominance, Netflix appeared to be focusing on protecting its market position through strategies designed to reinforce its existing strengths and assets. Could Netflix maintain its leadership position and reignite growth by pursuing a reinforcement strategy, or was it time for another reinvention?

This case was written for strategic management classes at the graduate and undergraduate levels. The case was classroom tested with undergraduate business students in a strategic management course and masters-level organizational leadership students in a strategic innovation and change management course.

This case is based on an existing firm. The names have not been changed, and all data on the firm’s history and opportunities is accurate. Primary data is based on interviews with the owner of the firm. One of the authors is a client of the studio and friend of the owner. The case has been reviewed and approved by Jill Murphey, owner of yogaErie. The purpose of this paper is to introduce students to industry analysis, to entrepreneurial decisions and to issues with organizational growth and change.

Jill Murphey, owner of Yoga Erie, is considering whether to or how to expand her studio operations into adjacent communities. Her studio has been very successful since she opened in 2009: the studio has been named Erie’s Best for most of the years since then. Classes were filled and students were asking about the prospects of a satellite studio in other parts of the community. Information on the options Murphey was considering are presented as well as Murphey’s motivations in opening her own studio, and the opportunities as well as concerns she faced in the expansion decision.

This case was originally targeted toward graduate and undergraduate courses in Strategy because of the industry definition and diversification problems but can also be used in classes on Organizational Change or Entrepreneurship.

This case requires students to evaluate alternative dual-share-class corporate structures that allow companies and entrepreneurs to pursue profit with purpose. The case explores Impact Makers, an IT consulting company based in Richmond, Virginia. While original founders of the firm hold all voting rights, the cash flow rights belong to two nonprofits setting the stage for a Newman's Own model of management consulting. The case discusses whether and how the alternative corporate structure aids the firm's overall strategy to attract top-quality employees, pay them competitive salaries, and provide superior service to its clients while donating 100% of its lifetime value to charitable causes, largely through partnerships with various nonprofit organizations. More importantly, the case asks students to evaluate how such a dual-share-class and dual-purpose company can raise capital to fund continued growth.

The case opens with CEO Michael Pirron reminding himself of all the questions he had run through to execute a strategy to further grow Impact Makers' consulting business both through expanding a menu of services and through conquering new geographical markets. To do either, or both, the company needed a cash infusion. Internal cash was limited, as up to 40% of it flowed to charitable partners, demonstrating Impact Makers' commitment to its mission. Raising debt for a company without fixed assets was challenging and time consuming. Complicating it all was that being structured as a nonstock corporation rendered equity raising difficult. Could Impact Makers raise money to grow and stay true to community values at the same time?

Shanghai ANE Logistics Co., Ltd., established on June 1, 2010, is a business of road part-load logistics for goods from 5 to 300 kilograms. Mr. Wang Yongjun and his management team have spent five consecutive years building ANE into the biggest part-load franchising network in China, and set up a brand new business model, through integration of traditional transport lines, part-load express network and information technology platform.

This case study outlines the strategic and organisational issues faced by an entrepreneurial firm operating in an emerging economy. This case study has been written to equip students with how entrepreneurs can overcome certain barriers and use technology to achieve product–market fit, taking the Indian laundry sector as an example. The following are the key learnings for the case: start-ups need to continuously assess the product–market fit to organise a highly unorganised sector; market entry and expansion modes require proper evaluation of available entry and expansion modes before pursual; franchising decisions require firm-specific and location-specific considerations; and careful consideration given to celebrity endorsement will result in increased sales.

The Indian laundry market was a highly unorganised market and presented an untapped opportunity. While the market opportunity was enormous, the existing solutions comprised local vendors that may not provide end-to-end services (washing, ironing, etc.). The case study described how a young entrepreneur, Arunabh Sinha, overcame certain challenges to achieve a product–market fit for metro cities and later expanded to Tier 2 and Tier 3 cities in India as well. However, the challenges remained, as the firm expanded by using a franchise model, and other modes of business were required to be evaluated as well.

The case study is suitable for students pursuing MBA courses in marketing, service marketing and entrepreneurship development.

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CSS3: Entrepreneurship.

The key learning objectives are as follows: analyze Mamaearth’s growth trajectory in the Indian market, illustrate the meaning of a direct-to-consumer (D2C) brand, analyze the importance of social media in building a D2C brand, analyze the challenges and advantages associated with a D2C brand, analyze growth and expansion options available with Mamaearth and evaluate the strategies for Indian start-ups in the beauty and personal care space.

In 2016, what began as a quest to find safe baby care products for the first-time parents Varun and Ghazal, turned into an entrepreneurial opportunity. The couple started Honasa Consumer Private Limited at Gurugram, which owned the brand Mamaearth. Conceived as a D2C brand for mothers opposed to harsh baby care products, it debuted with just six baby care products with exclusive online availability. For the brand to grow, it recreated the marketing mix to be perceived as a brand for all ages. The step successfully garnered a customer base of over 1.5 million consumers in 500 cities and a valuation of INR 1bn within four years of operations. In February 2021, Mamaearth became a brand with INR 5bn annualized revenue run rate and aspired to double it to INR 10bn by 2023. Though Mamaearth debuted as a D2C brand, after tapping around 10,000 retail stores, the Alaghs realized that many consumers still preferred transacting in the offline space. Alaghs decided to expand by acquiring a robust offline space in 100 smart cities in India. Would it be wise for Mamaearth to take forward their offline expansion plans? Alternatively, would an aggressive product innovation coupled with a more substantial online presence be a more sustainable proposition?

The case study is appropriate for Post Graduate Diploma in Management/Master of Business Administration level courses of second year in strategic brand management, digital marketing, integrated marketing communication and marketing strategy. The case stuudy may also be useful for prospective entrepreneurs planning to embark upon a D2C venture. The case study elaborates on the emergence, marketing and branding of Mamaearth. The case study helps students understand the meaning of a D2C brand and the growth options available in the Indian market for a D2C brand from the perspective of Mamaearth.

Teaching notes are available for educators only.

CSS 3: Entrepreneurship.