ElasticRun, a virtual logistics network, has raised $40 million in a funding round led by Prosus Ventures (formerly Naspers Ventures), and saw participation of existing investors Avataar Ventures and Kalaari Capital.
Pune-based ElasticRun enables small store owners to leverage quiet times of the day to gain increased revenue by handling local last-mile deliveries. The firm is also working with marquee consumer goods companies to offer a plug-and-play distribution network.
Its services are already available in over 200 Indian cities, and are built on its network of small convenience stores. According to the company’s website, it caters to industries, including FMCG, food, manufacturing and e-commerce. Some of the services offered by ElasticRun are primary distribution, secondary distribution and last-mile connectivity.
ElasticRun plans to use the new funds to to expand its network coverage to new geographies and additional categories, further build on its technology platform, and upgrade its analytics and machine learning platforms to handle national scale business. It is looking to extend its network to a million stores in the near future.
Avendus Capital was the exclusive financial adviser to ElasticRun on this transaction. Pankaj Naik, executive director and co-head of digital and technology, investment banking at Avendus Capital said the funds raised by ElasticRun should be sufficient for the firm for at least one-and-a-half to two years. “ElasticRun has a network of last-mile mom and pop stores across the country. The company has two main businesses. One, where they provide last- mile delivery for e-commerce firms and help them manage demand, especially when volumes tend to surge during festive seasons. The second business model is where the firm helps FMCG firms reach the last-mile kirana stores,” he said.
Sandeep Deshmukh, co-founder and CEO of ElasticRun said the last-mile problem is still a major issue both for logistics and consumer good companies in India. “By working with the network of small stores across the country, we solve that problem while helping the store owners grow their businesses at the same time. In addition, offering a flexible logistics extension to consumer goods companies to directly reach these small retails shops is a huge advantage over traditional distribution networks,” he said.