Abstract

In the heart of TechTown, "InnoCredit," led by the visionary CEO Ava Turner, revolutionized the financial industry with its Buy-Now-Pay-Later (BNPL) model, democratizing access to credit for consumers. Its ascent was meteoric, riding the wave of fintech innovation, and becoming a household name for flexible payment solutions. However, as the industry landscape evolved with regulatory changes and market saturation, InnoCredit faced significant challenges. Unforeseen workforce reductions and a failed merger signified a stark reversal from its days of rapid growth, leaving the company at a crossroads, searching for a path forward in an uncertain future.

Learning Objectives

 After working through the case and assignment questions, students will be able to do the following:

• Explore the evolution of a business model, specifically in the context of digital lending.

• Understand the financial indicators that signals challenges leading to a company’s shutdown, delving into key financial metrics critical to decision-making.

• Explore the pros and cons of different Digital Lending models in Indian market

• Evaluate financial and operational metrics as indicators of business growth and performance.

• Make strategic decisions based on a company's values and objectives.

• Understand the potential ramifications of a company’s closure on its employees, investors, and partners, developing a holistic perspective on the impact of business closure.