ElasticRun Aims to Become Profitable with USD 10 Billion in Revenue in 5-6 Years ElasticRun is a B2B e-commerce platform for rural India that helps brands reach out to the deepest parts of the country.
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B2B e-commerce unicorn ElasticRun aims to become profitable with annual revenue of USD 10 billion in the next 5-6 years, said Sandeep Deshmukh, Co-Founder and CEO, ElasticRun. It has an employee strength of about 1,167 and the number continues to grow.
"Our ambition continues to be extremely high. When we started, we knew the market we are targeting is humongous…probably this is the largest that any company can wish for and we believe we have an opportunity to build a USD 10 billion revenue business," Deshmukh told Entrepreneur India.
"ElasticRun is a B2B e-commerce platform for rural India. We help brands reach out to the deepest parts of the country. And we do that on top of our logistics platform, which is an extremely low-cost, high-scale, deep-reach platform. We have enabled over 300 brands in the country to reach to the extremely smallest parts of the country while leveraging our technology," said Deshmukh.
Along with this, ElasticRun also works with Indian e-commerce companies to take their shipments to the deepest parts of the country. "So, when you look at almost any of the FMCG companies, we probably will be their largest rural distribution partners. At the same time, if you look at any e-commerce companies, we will be their largest last mile/first mile delivery partner for deeper parts of the country. That's the overall thesis of the company," said Deshmukh.
ElasticRun's revenue from operations declined 48.6 per cent to INR 2,434.8 crore in FY24, compared to Rs 4,738.02 crore in FY23. However, the losses have almost halved in FY24 to INR 350 crore from INR 615 crore in FY23, the company said.
In FY24, it also made a strategic pivot to support high-margin regional brands to drive better profitability metrics. "This pivot has worked beautifully well for us. Currently, our high margin portfolio is over 90 per cent of our sales…This is where our unit economics works out best and that is the right business for us for profitability. We enabled several regional brands go national or expand beyond their base regions," Deshmukh said.
On the e-commerce side, he said the company has over 800 dark stores across the country that are being leveraged to service its B2B and e-commerce customers. "What we saw was that almost all of those 800 plus dark stores can be converted into fulfillment centers for quick commerce engines. Today we are working with almost all of the D2C brands that you know to convert their standard e-commerce shipments into a quick commerce shipment."
