Vibhor Gupta: Mastering the Art of Seizing Opportunity Cost in the World of Finance

In the world of finance, where many focus on cutting costs as the path to growth, Vibhor Gupta, the 39-year-old Chief Financial Officer (CFO) at Chalo, has a unique perspective. Gupta, an IIT-Bombay alumnus and graduate of IIM-Calcutta, started his career as an investment banker with Bank of America in 2005. His experience taught him the limitations of cost-cutting and the power of something often overlooked: opportunity cost. Gupta joined Chalo, a Bharat-focused mobility start up, in July 2020, right in the midst of the first wave of the COVID-19 pandemic. The mobility industry was reeling, with around 2,000 buses under Chalo’s operation idling on the sidelines, resulting in almost zero revenue. However, Gupta saw the crisis as an opportunity rather than a roadblock.

His approach was clear: it was not the time to cut costs but to expand operations and be prepared for the eventual recovery of the mobility sector. In December 2020, Gupta successfully secured an undisclosed amount of funding, with the Gross Ticketing Value (GTV) at $31 million. His vision and strategy paid off, as nine months later, Chalo raised another $40 million in funding, and the GTV doubled to $62 million. With the newfound resources, Gupta’s eye for seizing opportunity cost led Chalo to acquire Shuttl, a company backed by Amazon. The purchase not only expanded Chalo’s operations but also gave it an urban makeover. This strategic move propelled Chalo’s growth even further.

Today, Chalo has gone from operating 2,000 buses in FY20 to an expected closure of FY22 with over 10,000 buses. The company expanded from 13 cities to 21 cities and increased its rides from 14 million in January to a staggering 70 million. Gupta believes that the biggest opportunity is often the opportunity cost itself. His perspective is clear: to be a successful CFO, one must see what others often miss. New-age CFOs like Gupta are a different breed. They are more future officers than financial officers. Their role is about preparing the company for the future, embracing technology, and actively managing and facilitating growth. They must be digital enablers, paving the way for a more tech-oriented and automated business landscape. Gupta states that about 80% of their time must be allocated for the future.

These modern finance leaders are not risk-averse; they embrace change in the fast-paced world of technology and business. Their role extends to communication, bridging the gap between financial modelling and the tech-oriented mindset of today’s companies.

Gupta points out that traditional CFOs often dealt with silos, lacked a growth mindset, and missed the passion for making an impact. The modern CFO, as he sees it, needs to be aligned with the company’s vision and mission, ensuring that their balance sheet includes the element of impact on the future. In the ever-evolving landscape of finance, Gupta’s journey is a testament to the power of seizing opportunity cost and mastering the art of future-oriented financial leadership.