Strategic decision making for growth in Startup/Entrepreneurial business

Abstract

On the eve of 5th January 2016, Ashwarya Singh, CEO of Justride, a car rental platform, was looking at the company’s financial statement. The company had started operations in Powai, Mumbai last year and now, they were doing business with 18 leasing companies, had a fleet of 250 cars with operations in 4 cities. Mr. Singh was happy to see how far the company has come in a short span of 1 year but his main concern was related to sustaining the cash flows and getting more cars on the platform to meet the demand. Looking at the monthly Profit and Loss statement really worried Mr. Singh as he realized that the company’s loss was increasing. A quick glance at the cash flow statement made him sweat as he realized at the current rate company had only 3 months of cash left. The current model of the company was not very lucrative to raise more funds as the cash burn was really high.