Finlatics Investment Banking experience program- Project:1

Part:1
According to me, the best and optimal profile-idea combination would be A
(engineer with an MBA degree) with B (Zomato type application) as he has an
experience in both management and IT. It would be easy for him in finding the
right market for its products.
Persuasiveness:
As he is an MBA, he might be having great skills of persuading people. He
should use this skill to get more street food vendors. He can explain the perks
of having a partnership with him. In this covid era, there is a need to establish
more food delivery system which will lead to zero point of contact. As most of
the people have become health conscious so they do not prefer going to the
street food vendors due to overcrowding. Street food vendors have lost their
customers due to covid, therefore this system will give a kickstart to these
vendors. Delivery guys can be hired through various benefits like recognition,
job security.
Efficient system:
Being from an IT background, he will be able to develop an efficient application
which will be easy to use. The interface will differ from the other applications
and will provide additional features. This efficient application will lead to the
increase in the customer base.
Problems:
The major issue that Arjun would be facing would be in minimizing the cost. As
he wants to hire more delivery executives it would increase the costs of the
business. Street vendors might demand more commission on their sales
through this system. He also wants to expand his business’s operations to
other parts of the country which will increase his cost due to the permissions
that he might have to take in other states.
What Arjun can do?
Arjun can collaborate with various food delivery companies or the potential
food delivery companies to expand its networks across the country, also this
will lead to the decrease in costs. Collaborating will lead to the huge workforce
and huge capital investment.
A similar story:
Uber-eats entered in the market as a food delivery service but its presence was
only for a limited time. They were facing huge losses due to limited area of
operations. They then sold their stake to Zomato to recover themselves from
the huge losses that they were incurring. Arjun can also collaborate with the
popular food delivery companies to decrease its cost and to increase the
workforce and vendors he required across the country.
Conclusion:
At the end, I believe that Arjun through his management and IT skills will build
an efficient food delivery system company and he will be able acquire huge
food vendors and delivery executives. Though this idea will take time, but it
will be huge success for Arjun.

Part:2
The idea-combination that Arjun chose require both network driven benefits
and financial benefits. As his network is only confined to Mumbai, therefore
emphasizing more on network driven benefits will expand his area operations
all over the country. He’ll be reaching out to the new collaborators which will
increase his workforce for delivery executives.
He can reach out to the companies having high potential of growth and whose
area of operations are expanded across all over the country.
In financial aspects, as he wants to decrease its cost while employing more
delivery executives, he can charge an optimal commission from the street
vendors to pay off the delivery executives. He can take additional debts from
the market and by getting backed up by the private equity firm, it can lead to
reduced debt/equity ratio. Banks will have increased confidence on Arjun’s
company as the company is backed up by the private equity firm.
Also, the advisory benefit of the private equity firm will help Arjun to have a
wider market share and the business will meet its regulatory requirements
which he owes to the market.
 ADVISORY
PRIVATE EQUITY
ARJUN’S COMPANY
FIRM

REGULATORY
COMPLIANCE AND
WIDER MARKET