Led by the existing investors, Prosus ventures and Avataar venture Partners alongside Kalaari Capital, the Kirana commerce platform ElasticRun has secured $75 Mn in the recent funding round.
The post-money valuation of ElasticRun has stood at $400 million. The company has so far raised over $57 Mn in five funding rounds to date. The funds will help expand the company’s reach in rural markets by onboarding a million Kirana Stores to its network.
Founded in 2015 by Sandeep Deshmukh, Saurabh Nigam and Shitiz Bansal, ElasticRun’s tech platform enables direct rural distribution by FMCG businesses to reach small Kirana stores in the hinterland. It operates through a network of rural Kirana stores to enable various FMCG commerce operations. Through data analytics, the platform also helps Kirana businesses sharpen their marketing strategy.
Currently, ElasticRun is operational in more than 500 locations across India, servicing over 100 brands. Amazon, Brittania, P&G, ITC, Colgate, Himalaya, Dabur, Godrej, Pepsico and others.
ElasticRun’s crowdsourced logistics network requires no working capital on behalf of the partner and introduces variable costs and deeper reach, the company claims. The platform also does supply and demand aggregation to fulfil the small ticket size of an individual Kirana store. In addition, ElasticRun is also playing a healthy role for e-commerce companies such as Amazon with logistics and last-mile delivery support.
While doing so, the company competes with other logistics tech startups such as Locus.sh, 4TiGO, BlackBuck and MightyFly irrespective of their different operational models and offerings.
ElasticRun aims to expand with a 10 million Kirana stores network which will enable a $600 million+ consumption opportunity. This will help the company reach a revenue rate of $1 billion from the current $350 million in the next 12-18 months.
“Over the last 18 months, our consumer products and food business serving the rural Kirana shops has seen dramatic growth. The Covid-19 pandemic has enhanced focus for many brands towards rural markets, and our model has enabled us to deliver real value to them and grow our brand basket significantly,” said, Sandeep Deshmukh, Co-founder and CEO of ElasticRun.
“We expect 2021 to be our biggest year yet and are looking to more than triple our business over the next 12 months,” he added.
According to Forrester Research, India’s retail market is worth an estimated $883 billion for the year 2020. Out of this whopping market cap, $608 billion is accounted for by Grocery Retail alone. By 2024, this market is expected to grow over $1.3 Tn enabling a trillion-dollar industry & opportunity in India.