Swiggy: Optimizing Cash Burn
(3 pages of text)
By August 2015, Swiggy, an on-demand food delivery start-up, had been operating for almost one year in Bengaluru, India. The exponential growth of the business was expected to persist. However, Swiggy was incurring a loss, or a cash burn, on each delivery it was making. The company’s current cash reserves were also drying up, and its chief executive officer had been unsuccessful in attracting new venture capital funding to finance the cash burn estimated for the next four quarters. Swiggy must figure out how to pursue its growth without the injection of any fresh funds.
The case is suitable for an entrepreneurship, analytics, operations, or accounting course at the undergraduate or graduate level. The case describes how a start-up resolved challenges in its first year of operations. The company must find ways to attract new capital funding to help mitigate the loss of revenue incurred during delivery. Analytically, students will be exposed to the importance of forecasting when making financial projections using an exponential growth model. Students will also use Excel’s Goal Seek and Solver tools to work out the quantum of operational adjustments.
Accommodation & Food Services
Asia Pacific, Large, 2015
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