The Winning Strategy: How Delna consulted a sports business to score big with geographic expansion.
Updated: Oct 4
In the world of sports businesses, scalability isn't always a given. Such was the case with our client, an amateur sports business whose model was more growth-profitable than innately scalable. (Read this article to know about the key differences between a scalable and a growth-profitable business) Enter Delna, tasked initially with investment consulting - who to raise investments from, how, and whether to do it.
The journey that unfolded from this point transformed the business and set it on a path of strategic expansion and impressive success.
The Investment Strategy:
Delna's first intervention was to guide the business towards strategic investors whose visions aligned with the company's for raising funds. Unlike traditional venture capitalists, these investors were likely to be patient with their capital, focusing on long-term growth rather than immediate returns. Heeding Delna's advice, the company raised funds from prominent family offices in India, including that of pioneering investor Anand Mahindra.
The Black Swan Event:
As with many businesses, the pandemic struck, reducing the company's revenue to near zero. However, the choice of strategic investors proved invaluable. They continued to inject funds to sustain operations during the pandemic, their belief in the vision and purpose of the business unwavering. This resilience was a testament to Delna's strategic foresight and understanding of investor relations.
As the pandemic ebbed, the business decided to explore new geographical territories, including Dubai. She provided critical guidance on go-to-market strategies and identified growth-friendly ideas. While the business model was not intrinsically scalable, the launch in multiple geographies meant that growth from each unit contributed to the overall scalability of the business. Each geographic entity expanded at its own pace, reflecting high returns on the consolidated balance sheet.
This case study is a testament to businesses that operate on growth-profitable models but aspire for more. Exploring new territories and markets under the guidance of a seasoned strategist like Delna can pave the way for steady, sustainable expansion. In this story, strategic investment and geographic growth transformed an amateur sports business into a recognized player, demonstrating that the right strategy can turn the game around.