Kapil Meshram Case Study Unit 3

Name:- kapil msehram MBA(SLM)
Case study - unit 3 startup and new ventures
Biryani by kilo
Introduction:-
Biriyani by kilo which is included in the food service and delivery category. It prepares and
delivers authentic biriyani to the masses and this company was founded in 2015 and mr.kaushik
roy , mr. Vishal jindal and ritesh sinha are the founder of biriyani by kilo and its offers three
type of biriyani:- Hyderabadi, Lucknowi, and Kolkata. The company has outlets in Delhi NCR
and Mumbai and also the company processes close to 1000 orders in a day with an average order
size of INR 900 and they have faced serious financial crisis in their company between 2015-16
and they had approached a financial consultant to out off these hurdles.
Summary:-
Company founded in 2015 and it has received overwhelming response from customer for its
mouth watering menu. And its delivers authentic biriyani to the peoples. And the company
primarily operates under the cloud kitchen with dine-in options at selected location on latent
demand. And offers home delivery of the traditionally cooked meal.
Growth of biriyani by kilo:-
The company want to grow more they want to increase their revenue and the company has
already say that their business exponentially at a rate of growing is 70% to 80% and the company
has also says that their current sales run rate of 3.4million which is in INR24crores and the their
revenue will reach to 72million till 2022 and the company has increased the staff members also
and which is currently 300 member during the delivery time and their starting growth in 2017-28
was around 12.5crores and they are currently clocking 2.4crores in a month and the team of
biriyani by kilo utilized their funds appropriately right from the start and that helped the
company achive stellar growth and the company have aims to have 70-80 outlets pan-india and
the company revenues to rs150-200crores that is the now goal of the biriyani by kilo to grow up.
Questions/answers
1. Sources of Funds are available for their Venture
• Internal source of fund
Retained earning:- Companies generally exist to earn a profit by selling a product or

service for more than it costs to produce. This is the most basic source of funds for any
company and, hopefully, the primary method that brings in money to the firm. The net
income left over after expenses and obligations is known as retained earnings These
funds can be used to invest in projects and grow the business.
• External source of fund
Family and friends:- businesses can obtain a loan or be given money from family or
friends that may not need to be paid back or are paid back with little or no interest
charges
Bank overdrafts:- are where a business or person uses more money than they have in a
bank account. This means the balance is in minus figures, so the bank is owed money.
Overdrafts should be used carefully and only in emergencies as they can become
expensive due to the high interest rates charged by banks
Venture capital and business angels:- refers to an individual or group that is willing to
invest money into a new or growing business in exchange for an agreed share of the
profits. The venture capitalist will want a return on their investment as well as input into
how the business is run.
2. Venture Capital Mechanism & Angel Funding Techniques
Venture capital mechanism:- Venture Capital typically comes from institutional

investors and high net worth individuals and is pooled together by dedicated investment
firms.It is the money provided by an outside investor to finance a new, growing, or
troubled business. The venture capitalist provides the funding knowing that there’s a
significant risk associated with the company’s future profits and cash flow. Capital is
invested in exchange for an equity stake in the business rather than given as a
loan.Venture Capital is the most suitable option for funding a costly capital source for
companies and most for businesses having large up-front capital requirements which
have no other cheap alternatives.
• Equity
• participating debentures
• conditional loan
Angel Funding Techniques:- Angel investors prefer to get involved in the early stage of
a company, at the “seed” or “angel” funding phase. That could mean the angel invests
when the company exists only as an idea, or it could come when a business is already up
and running
• The family investor

• The relationship investor
• The idea investor
3. Role of Central Government & Various Schemes for the development of

Entrepreneurship Development Program in the country.
• Role of government to development of entrepreneurship- Government plays a

very important role in developing entrepreneurship. ... The government set
programmes to help entrepreneurs in the field of technique,finance,market and
entrepreneurial development so that they help to accelerate and adopt the changes
in industrial development
• Various schemes for the development of entrepreneurship:-
➢ Pradhan Mantri Mudra Yojana:- PM Modi launched Pradhan Mantri

Mudra Yojana, wherein Micro Units Development and Refinance Agency
Bank or MUDRA Banks provide loans at low rates to micro-finance
institutions and non-banking financial institutions, who in turn provide
low-interest loans to startups and MSMEs.Hence, Pradhan Mantri Mudra
Yojana is one of its kind fund of funds, devised and conceptualized to
empower Indian entrepreneurs. Loans up to Rs 10 lakh can be availed
under the MUDRA scheme
➢ Start Up India:- The government has already launched the I-MADE
programme to assist Indian entrepreneurs in creating 10 lakh (1 million)
mobile app start-ups, as well as the MUDRA Bank's scheme (Pradhan
Mantri Mudra Yojana) to provide micro-finance, low-interest rate loans to
entrepreneurs from low socioeconomic backgrounds.
• Multiplier Grants Scheme (MGS)

• Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE)
• Software Technology Park (STP) Scheme
• The Venture Capital Assistance Scheme (VCA)
• Loan For Rooftop Solar Pv Power Projects
• Ministry of Skill Development and Entrepreneurship
• ATAL Innovation Mission
• eBiz Portal
• Dairy Processing and Infrastructure Development Fund (DIDF)
These are some scheme that launch by government for the development of
entrepreneurship.
4. Preparation of a Healthy Pitch for their Venture to invite outsiders for investment
purpose
1. Create a presentation
First, take the time to put together your pitch deck. The goal is to create a deck that is
easy for you to work off of and gets investors excited about your business
2. Practice your pitch

You need to practice your pitch. Not being able to quickly speak to each element of your
business makes every other tip on this list virtually useless
3. Outline the problem with a story

Begin your pitch with a compelling story. It should address the problem you’re solving in
the marketplace. This will engage your audience right out of the gate. And if you’ve done
any testing try to include actual data here
4. Be laser-focused
Investors' time is their most valuable asset. If you convey a respect for their time, they
will interpret that respect as your ability to treat their funding with respect.
5. Explain exactly who your target audience is
Use demographic and psychographic features to pinpoint your customers. Show investors
a picture of a customer along with relevant data points
6. Dress to kill
You can judge a person by the way he or she looks. That may be unfair, and you may
resent it, but you’re not going to overcome this natural human tendency
7. Customer acquisition: Marketing and sales strategy

This is usually one of the most skipped sections of an investor pitch and a full business
plan. How will you reach your customers? How much will it cost? How will you measure
success?
8. Explain your revenue model.

Investors invest because they want to make a return on that investment. An investor will
care about yourpitch if you can answer this question: How will my company make you
rich? The answer, in investorspeak, is your revenue model. Specifically identity which
type of revenue model you are embracing, andhow you intend to apply it.
9. Be wildly enthusiastic.
You can't fake passion." A good technique for increasing your energy level is to add
about 50 percent more energy than you feel comfortable with. Entrepreneurs must crawl
out of their comfort zone.
5. Importance of Annual Budget & Financial Mix in every business
A budget is a foundational framework for your business finances, detailing past

performance and providing a tool for forecasting the fiscal year, or another time period,
with a view of assets, revenue, and expenses. Here is an overview of the budgetary
process
o Is the process of creating formal plan and translating to goals into a

qouantative time .
o A budget is a realistic plan for the future expressed in quantitative tearm ,
Financial and non- financial .
o A budget is an operational plan and a control tool for an enttity that
identifies the resources and commtments needed to satisfy the entity's
goals over a period
o If you're running your business without a proper budget you may find
you're actually just running around in circles and not meeting your long-
term goals.
o By taking the time now to set a budget, you will free up time in the future
and giveyourself the best chance of achieving the reward you want for
your hard work.
o Financial structure refers to the mix of debt and equity that a company
uses to finance its operations. It can also be known as capital structure.
• Financial mix for business
Using Debt:- Debt can take many forms, but for most entrepreneurs, it will take
the form of bank loans or loans from friends and family.The main advantage of
financing your business through debt is that your ownership interest doesn’t get
diluted. There are also tax advantages to using debt to finance your business. You
can deduct the interest charged on the money you borrowed from your business
income and, if your business takes a loss, from any other income you may have.
Using Equity:- For entrepreneurs, equity usually takes the form of owners
investing their savings into the business. Some businesses might also be able to
attract private investors such as angel investors and venture capital or private
equity funds.
6. Competitor Analysis:- Biriyani by kilo may have many competitors such

competitors are Bright Cellars, Paradise, Charcoal Eats, Biriyani Blues and Behrouz
and the more competitors is like local biriyani shop, raoside biriyani shop, some are
non vegetarian Hotels and Fast food corner
• Some key factors of competitor analysis
1. Understand Core Products and Services

2. Long- and Short-Term Market Trends
3. Focus on the Right Competitors
4. Focus on the Purpose of Your Competitive Analysis
5. Be Flexible As Data Shows Popular Trends
6. Don’t Respond Too Hastily to Competitive Analysis

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Name:- kapil msehram MBA(SLM)

Case study - unit 3 startup and new ventures

Growth of biriyani by kilo:-

• Internal source of fund

Retained earning:- Companies generally exist to earn a profit by selling a product or

2. Venture Capital Mechanism &amp; Angel Funding Techniques

Venture capital mechanism:- Venture Capital typically comes from institutional

• The family investor

3. Role of Central Government &amp; Various Schemes for the development of

• Role of government to development of entrepreneurship- Government plays a

• Various schemes for the development of entrepreneurship:-

➢ Pradhan Mantri Mudra Yojana:- PM Modi launched Pradhan Mantri

• Multiplier Grants Scheme (MGS)

2. Practice your pitch

3. Outline the problem with a story

7. Customer acquisition: Marketing and sales strategy

8. Explain your revenue model.

5. Importance of Annual Budget &amp; Financial Mix in every business

A budget is a foundational framework for your business finances, detailing past

o Is the process of creating formal plan and translating to goals into a

• Financial mix for business

6. Competitor Analysis:- Biriyani by kilo may have many competitors such

• Some key factors of competitor analysis

1. Understand Core Products and Services

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2. Venture Capital Mechanism & Angel Funding Techniques

3. Role of Central Government & Various Schemes for the development of

5. Importance of Annual Budget & Financial Mix in every business