Sula Vineyards (B): The Entrepreneur’s Dilemma – Managing Investor Exits

Case Solution

Claudia Zeisberger, Maninder Minhas
INSEAD ()

The case focuses on the risks and rewards of an early investment in a successful consumer startup in an emerging market (i.e., non-tech), from seed funding in 2004 to raising expansion capital in 2019. Nasik Valley in India while making external fundraising decisions. Case (A) takes the perspective of the initial investor. This is followed by Deepak Shahdadpuri, who has continued to invest in Sula for 13 years, gradually reducing his shareholding. Cases (B) and (C) follow the company as it gradually increases funding rounds to fuel its growth and international expansion. As the Sula brand and CEO Rajeev Samant rise in popularity, the company is attracting the attention of a number of investors, including European family offices, Asian institutional investors, venture and growth capital, and sovereign wealth funds. Given the emerging markets environment, the case can be used to investigate investment risks due to political and regulatory uncertainty, as well as currency risks for US dollar-based institutional investors.

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