Question
Meera Desai is a young graduate from a leading Industrial and Product design Institute of Pune, she specialized in furniture design After working in a
Meera Desai is a young graduate from a leading Industrial and Product design Institute of Pune, she specialized in furniture design After working in a design studio for 5 years, Meera was bitten by the entrepreneurial bug. After consulting with her family and friends, she founded an online venture named SitWell Ltd, for selling good quality but affordable priced furniture Meera started the business with an initial cash investment of Rs 50 lac, by way of 5 lac equity shares at par value of Rs 10 per share She also issued herself share warrants, under which she is entitled to subscribe to additional 50,000 equity shares of SitWell Ltd within 3 years, at face value.
After 18 months of good growth, Meera decided to expand the operations, for which the funding requirement was estimated at Rs 2.0 cr For funding this, SitWell got in a new early stage VC investor at a pre money firm valuation of Rs 8.0 cr
After another year of super performance, in consultation with their Investment Banker and the VC, SitWell decided to set up 5-6 brick-and-mortar "Experience Centres for furniture in malls and high-street locations across Pune, in addition to their online sales business As part of this second round of funding, they raised Rs 10.0 cr from another VC Fund, at a pre-money valuation of Rs 40,0 cr Immediately after this second round of funding. Meera exercised her share warrants in full.
Based on all the above information about the fund-raises, prepare the detailed capitalization tables for SitWell, clearly showing the share capital, stakes of each shareholder, share premium account, and cashflows at each stage.
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