A double economics holder from St Aloysius College and Mangalore University, Siddhartha, who started off as an investor. He owned 10000 acres of coffee farms, started an era of Cafe Coffee Day with the first outlet in Bengaluru.
After Cafe Coffee Day's IPO in 2015, the number of bistros surged from 1,000 in 2011 to a remarkable 2,000 locations nationwide. In 2010, an association led by Kohlberg Kravis Roberts decided to inject a substantial ₹10 billion into Coffee Day Resorts, a subsidiary of CCD.
Although things were looking fairy, the books had a different tale to tell. In 2011, the total liabilities and debt amounted to $189 million, and by 2018, it ballooned to $ 758 million A total debt of around Rs 6,550 crore, was reported in March 2019.
Siddhartha sold a chunk of 20.32% of his Mindtree share to Larsen & Toubro in a financial tango, pocketing approximately Rs 3,200 crores. But even this strategy could not reduce the pain and in April 2019 500 outlets had to permanently close their shutters.
On July 29, 2019, after being missing for several days, Siddhartha died by suicide, jumping into the Netravati river in Karnataka. In a note, he mentioned the pressure he was experiencing from PE partners, other lenders, and the income tax department.
Come December 2020, she rose to CEO from her prior role as a non-executive director in 2008. Cut costs, close underperforming outlets, forge partnerships, and prioritize profits. By March 2021, the net debt on the books was reduced to Rs 1,731 crore.
Coffee Day Global and IndusInd Bank have settled their debt issue. The NCLAT, Chennai Bench, has terminated the Corporate Insolvency Resolution Process (CIRP) of MS Coffee Day Global
What do you think is the Future of Cafe Coffee Day? And is it okay to put such immense pressure on entrepreneurs? Also, if you want to learn more about the IPO that has come up,Check our IPO Section in StockEdge