B2B E-Commerce Platform Elasticrun's Revenue Doubles To Rs 1,087 Crore In FY 21
In FY21,losses increased by 10% to Rs 101 crore, up from Rs 91 crore the previous year.
The company, which sells FMCG products to kirana(corner)stores, said it was "in the process of expanding the distribution network pan India, resulting in hefty distribution expenses resulting in the net loss."
The majority of these were one time expenses, according to the report.
ElasticRun, launched in 2016 by former Amazon executives Sandeep Deshmukh, Shitiz Bansal,and Saurabh Nigam, functions as an extension of FMCG firms 'direct distribution networks in rural areas, bringing new customers to these brands.
ElasticRun has partnered with P&G, Pepsico, Dabur, Marico, Godrej, and Britannia, among others.
The majority of its inventory, according to its financial statement, consists of biscuits, toothpaste, oil, and sugar.
After raising $330 million led by Japan's SoftBank and Goldman Sachs, the company became a unicorn or a privately owned company with a valuation of $1 billion or more in the current financial year. Following the fundraising round, the company's valuation jumped from $400 million to $1.5 billion.
Udaan, Reliance's JioMart, Amazon, and Indore based Shop are among the several tech startups operating in the kirana e-commerce industry. All of Kirana's efforts are aimed at bringing order to the disorganised retail network.
ElasticRun is a rural only solution provider that works as an extension of an FMCG company's existing distribution network. As a result, Deshmukh previously told that the company's strategy is collaborative rather than disruptive. Existing distribution channels have complained about Udaan and JioMart for allegedly reducing pricing.
By crowdsourcing human resources and transportation vehicles from diverse channels and sewing together a virtual transportation network, the company maintains an asset light distribution network.