Ajay Bam Case Study Essay

Ajay Bam is the resident of Pune, India. He possesses a Bachelor’s degree in Computer Engineering and a Master’s degree in Software Engineering. Having an engineering background, Ajay is creative and has a will to change the world with his technological ideas. Entrepreneurial Attributes of Ajay

Ajay Bam is a strong person with a will to complete his dreams. He possesses the following attributes: Independent

Innovative thinker

Passionate about his work

Has a thirst for learning

Does not works for money


Don’t give up easily

Loves to meet new people

Among the above list of attributes that Ajay possess, his three most important attributes are his passion for his work, his innovative thinking and his will of not giving up easily. Innovative Thinker: Ajay Bam has the capability to make a change in the existing system with his new ideas. With his innovative thoughts he came up with an idea of making a Mobile payment and Loyalty program. His innovative thoughts will bring him success in the future as he has the potential to think beyond what others can think. Passionate about his work: His true dedication and commitment to make his dream come true, is reflected in his efforts. To make “Vayusa” a success, he has left no stones unturned. With this attitude towards his project he will definitely be the first to make the Mobile payment and Loyalty programs. Don’t give up easily: In spite of so many barriers in his way, the most effective one, the money barrier, he didn’t give up. He lost his friends in the incident of 9-11; still he continued to work to make his dream come true. Failures come in the way of everyone, but to succeed, it is very essential not to give up the hopes.

Bootstrapping Approach

A bootstrapping approach is an approach for an internet based business with minimum resources available. Ajay followed this method to start his business because he didn’t have much money to finance his business. He made each and every effort to get his work done with minimum money investment. He even tried to arrange funds for his project through convincing financing organizations and making them invest in their project. Ajay’s efforts

His first effort was to convince the attorney John Hession for his services. As Ajay was short of money, he had to take a legal education to reduce the work of his attorney and this saved him thousands of dollars. Secondly, he had to build a prototype of Vayusa, to convince merchants. For this he needed finance, thus he convinced National Collegiate Investors and Innovators Alliance (NCIIA) for grants in his project. For this he brought in the third partner Troy Chen. When he started running short of cash, he applied for the housing director at The Olin Engineering School and started working for 18 hours a day. Ajay convinced a point-of-sale payment company, VeriFone for a meeting with him by calling them every day and then gave them an executive summery for his product. Even after the tragedy of 9-11, and losing 6 of his friends, Ajay decided to attend the West Wireless Conference in California with which he was able to meet Nick Epperson, a former chief marketing officer at VeriFone and the chief technical architect who had designed the VeriFone box. Ajay presented his Vayusa plan at SeaPoint Ventures and secure commitments for a first round of venture funding.

Read also  Credit Protection Identity Theft

Opportunity to create Vayusa

When in his second semester of MBA, Ajay went to Munich, Germany for his four month international management internship; he noticed that people have fancy phones and are very fond of having more than one phone. He then decided that mobile applications were going to be the next big things in the United States. Then one day, after returning to US, Ajay and fellow MBA Walter Stock were meeting at Starbucks to brainstorm consumer applications for mobile technology. Then their discussion towards the hassle of coffee cards, stroked the opportunity in their minds. Market Assessment

The Market Assessment done by Ajay consists of the following points: Merchants spend significant dollars on payment fees and millions of dollars to manage loyalty programs which are not affordable by small and mid size businesses. Merchants are therefore looking for a new and cost effective customer relationship offerings and services through mobile phones which are secure and safe. Merchants need loyalty offerings for customers that include SMS-based coupons, promotions, notifications, and digital tags to drive customers to the stores and offer better customer and product services. Consumers have to carry a lot of loyalty cards for their purchases. They have to take care of their cards and losing any will lead to lose in rewards. Consumers thus need convenience in managing their payment receipts and loyalty programs providing access to all the information at anytime from anywhere.

Funds and Business Team

To get the funding source interested, firstly Ajay applied for grants in NCIIA to build the prototype and added Troy Chen as the third partner. He then convinced a point-of-sale payment company, VeriFone and had an opportunity to meet Nick Epperson and convinced him as advisor. Ajay then presented his Vayusa to Tom’s three general partners at SeePoint Ventures and explained them that Vayusa needs to raise $2 million in the first year to support the beta development and implementation, and to hire senior management. Vayusa would then need another $5 million in funding to reach a positive cash-flow position in third year. The partners were convinced to invest.

By January of 2002, Vayusa had a working prototype to support a detailed business plan, and a board of advisors that included, in addition to Tom from SeaPoint Ventures and Nick from VeriFone, a former CEO of NYNEX, a former CEO of Citibank, and Bob Anderson, director of the MIT Enterprise Forum and former CEO of GenRad. Ajay also decided to choose Rahul to build software platform whom he had met through an organization of Southeast Asian entrepreneurs. Ajay applied for a follow on NCIIA grant. Then Ajay scheduled a meeting with Jack Weston which was from a credit card industry and had recently joined a startup that was building applications to store coupons on charge cards and he joined Vayusa two months later than, as an advisor. But then Tim Patel, the software designer left the team. A new member Phuc Truong joined Vayusa as he had strong contacts with a lot of merchants.

More Essays

  • American Impress Credit Card

    1. Betty is married to Abel, a successful engineer. They have a joint account which gives them both an American Impress credit card, which they have had for years. They have always made the payments on time and over the years the credit limit has gone up and up. Abel has a skiing accident and dies. A month...

  • Is Credit Card Necessary in our Life

    A credit card is a card issued by a financial company to the holder in order for an individual to borrow funds often at a point of sale. It is important to note that credit cards charge interest and are basically use for short-term financing. Moreover, the interests charged on credits cards are enacted...

  • Rough Draft

    Imagine if someone is pretending to be you, using your credit card to indulge themselves in items that they would never be able to afford. Credit card fraud is far too common today, losing a wallet can mean losing your identity. A credit card can be a positive or negative thing, depending whose hands it's...

  • Advantage and Disadvantage of Credit Cards

    * Purchase Power and Ease of Purchase – Credit cards can make it easier to buy things. If you don't like to carry large amounts of cash with you or if a company doesn't accept cash purchases (for example most airlines, hotels, and car rental agencies), putting purchases on a credit card can make buying...

  • Credit Protection Identity Theft

    1. If you find errors on your credit report, what steps would you take to correct them? In my personal experience, I had an error on my credit report when I was applying for a loan with my bank. I did not get approved for my loan even though one month prior I was approved and I had a low interest rate due...

  • Card Security Code

    Advertising is presentation of some products by means of television, newspaper, radio, billboards, magazines,internet and films in order to increase their sales. The main objectives of advertising are; increasing the usage of a certain product, creating new customers and increasing brand recognition, to...

  • Creativity in the Workplace

    Creativity plays an important role in the development of new and innovative ideas. Having this kind of skill is necessary in the success of most businesses. However, producing creative ideas is not that easy. It is not something that could easily be created in an individual's mind as compared with other...

  • Statistics_ Credit Card and Pelican Stores

    CASE 1: Pelican Stores Pelican Stores, a division of National Clothing, is a chain of women's apparel stores operating throughout the country. The chain recently ran a promotion in which discount coupons were sent to customers of other National Clothing stares. Data collected for a sample of 100 in-store...

  • Booking System

    1.Product Description Gamici is one of Singapore's most prestigious and stylist Italian restaurant which served authentic Italian cuisine. With its simple, elegant yet friendly and vibrant environment, Gamici has become a common social gathering place for many friends and families. Therefore, this has...

  • Cougar Visa_ Developing a Means End Chain for a Credit Card

    A) Using the data provided, perform a means-ends analysis. During this case study, we can see that the current state the following: there are an increasing number of competitors in the credit industry. More and more companies enter this industry, making even more difficult for the bank to compete and gain...

Read also  Is Credit Card Necessary in our Life