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ElasticRun's Revenue Doubled to Rs.1,087 Crores in FY21

CIO Insider Team | Friday, 4 March, 2022
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According to reports, the business-to-business (B2B) e-commerce platform ElasticRun’s revenue grew 2x to Rs 1,087 crore in FY21. Its revenue was Rs 510 crore in FY20.

Losses widened 10 percent to Rs. 101 crores in FY21 from Rs. 91 crores in the previous financial year.

The company says, it was in the process of expansion of the distribution network pan-India and hence there has been heavy distribution expenses resulting in the net loss.

ElasticRun - founded by former Amazon executives Sandeep Deshmukh, Shitiz Bansal and Saurabh Nigam in 2016 - acts as an extended arm of the direct distribution networks of FMCG companies in rural areas to provide these brands with new customers.

P&G, Pepsico, Dabur, Marico, Godrej, Britannia are some of the brands that have partnered with ElasticRun.

As per reports, the company’s most of inventory consists of biscuits, toothpaste, oil, and sugar.

Reports suggest that, the company became a unicorn in the current financial year after raising $ 330 million led by Japan’s SoftBank and Goldman Sachs. The company tripled its valuation from $ 400 million to $ 1.5 billion after the funding round.

ElasticRun focuses on solving for the rural market alone, and acts as an extended arm of FMCG companies' existing distribution network

The kirana e-commerce space is flushed with tech companies like Udaan, Reliance’s JioMart, Amazon, Indore-based Shop.kirana all trying to organie the unorganized retail network.

Deshmukh says, “ElasticRun focuses on solving for the rural market alone, and acts as an extended arm of FMCG companies' existing distribution network. Hence, its approach is collaborative rather than disruptive. Udaan and JioMart have faced protests from existing distribution channels for alleged undercutting of prices.”



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