[Funding alert] Pune startup ElasticRun raises $75M from Kalaari Capital, others
Pune-based kirana commerce platform for rural areas ElasticRun on Thursday said it has raised $75 million (about Rs 550 crore) in a Series D round led by Avataar Ventures, Prosus Ventures, and Kalaari Capital.
In a statement, the startup said the new investment round will help expand its reach further into rural markets, enabling access for big consumer brands, food brands, and ecommerce platforms to kirana shops.
"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, ElasticRun Co-founder and CEO Sandeep Deshmukh said.
At the same time, he said, 2020 has seen one of the biggest growth spikes in the store network and ecommerce business.
"As we continue to extend our reach deeper into the country through our logistics and transaction platforms, we have also been adding new capabilities such as credit and analytics layers to the core platform. 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.
The current Series D round takes the total funding raised by ElasticRun to about $132 million. In 2019, the startup raised $40 million in its Series C investment led by Prosus Ventures and Avataar.
Founded by Sandeep Deshmukh, Saurabh Nigam, and Shitiz Bansal in 2016, ElasticRun operates in over 300 cities in India and works with over 125,000 retail outlets.
The startup's current revenue run rate is around $350 million and is expected to cross $1 billion over the next 12 months, it said. The startup has over 100 brands, including top FMCG players such as HUL, P&G, ITC, Marico, Britannia, Colgate, Nivea, Patanjali, and Dabur.