Financing the growth of Urban Chowk / Hetal Jhaveri (Amrut Mody School of Management, Ahmedabad University, Ahmedabad, India) and Ashutosh Dash (Department of Accounting and Finance, Management Development Institute Gurgaon, Gurgaon, India)
Learning outcomes: Identify and explain the factors that contribute to the success of a restaurant business. Analyse different sources of entrepreneurial finance. Identify and explain local entrepreneur's expectations from a funding agency. Evaluate investment decision-making criteria for entrepreneurial funding agencies
Case overview/synopsis: Kartikey Rajput, the promoter of a food park Urban Chowk, was waiting for the Covid regulations in the country to be relaxed. The entrepreneur in him found a business opportunity to provide hygienic food with a beautiful ambience and floated a food park (Urban Chowk) with the support of his wife Nikita Agrawal in 2017 and the second edition amidst Covid in 2020. The business model was well-appreciated by food vendors as well as customers. Rajput could see future growth potential in urban India. But his aggressive business plan to open five food parks in different cities in the next three years was disrupted due to the Covid pandemic. The expansion required huge investments, and post-pandemic challenges were plenty. The decision to go beyond Ahmedabad required the selection of cities besides the major challenge of the financing choice. The new cities might have huge footfall potential but finding the right location at the right price was a different challenge. Rajput was also concerned with the sources of getting the required finances. The entrepreneur was contemplating and evaluating the alternative sources of finance available to a start-up
Complexity academic level: This case is appropriate for a graduate and post-graduate level programme in the courses like entrepreneurial finance, entrepreneurship and strategy. This case can also be used in an executive programme on management and Management Development Programmes (MDPs) on entrepreneurship or entrepreneurial finance
Supplementary materials: Teaching notes are available for educators only
