Seybold Report ISSN: 1533-9211
Kapil Rana1 Prof Javaid Akhter2 Prof Anil Kumar3
Doctoral Research Scholar, Faculty of Management Studies & Research, Aligarh Muslim University, Aligarh1
Professor of Business Administration, Faculty of Management Studies & Research, Aligarh Muslim University, Aligarh.2
Professor at Shri Ram College of Commerce (SRCC), University of Delhi.3
e-mail: kapil.rana@icai.org, ORCiD: https://orcid.org/0000-0003-2525-5504
Vol 17, No 11 ( 2022 ) | Licensing: CC 4.0 | Pg no: 2873-2900 | Published on: 21-11-2022
Abstract
The purpose of this paper is to study various prospects, availability, feasibility, implementation, practicalities, and unresolved gaps of working capital for Indian startups. In addition, this study examines the source and application of working capital, the impact on trade execution, the ability to receive liquidity proportions, and analyzes how it has been accomplished. Further, this research paper shows a comparative analysis of India’s working capital management (WCM) practices of selected asset-light startups. The statistical techniques have been used in this research for descriptive analysis and quantitative research, and secondary data sets are used to access WCM.
The usage of the asset-light model has become the most popular way of doing business among new generation startups and corporates. Although working capital management is crucial for startups, there are scarce studies on effectively using WCM within newly developed companies. Moreover, the effectiveness of WCM has primarily been studied in large enterprises and SMEs, indicating a current gap in the literature for startups. That is why it is essential to conduct further research on WCM for startups.
This study has found no relation between the working capital trend and the turnover of startups. This study on working capital trends and turnover of startups has concluded varying results. With the increase in turnover, one has shown an increase in working capital while the other have shown a decrease or negative working capital. BigBasket has very high debtors, and Grofers have their investments in cash, cash equivalents, short-term loans, and advances; in contrast, both companies have commonly used trade payables as a source of funding for working capital needs.
Keywords:
Working capital management, startups, last-mile delivery, asset-light model