ElasticRun, the Ntex Transportation Services Limited-owned B2B unicorn, witnessed a 72% increase in losses for FY23, reaching Rs 618.82 crore. Simultaneously, the company experienced a substantial 25% growth in revenue, totaling Rs 4,754.86 crore.
Notably, expenses surged by 40%, attributed to factors like freight, transportation, servicing costs, and depreciation in financial assets.
Supported by investors like SoftBank and Goldman Sachs, ElasticRun marked a strategic move by writing off its investments in Etyacol Technologies, the owner of CashKumar.
The company had initially acquired a 25% stake in CashKumar in 2021 to enhance credit access for its associated merchants.
Founded in 2016, ElasticRun specializes in distributing and delivering FMCG to corner store merchants, primarily in rural India. The company, valued at $1.5 billion as of February 2022, has raised $461 million to date and faces competition from Udaan, DealShare, and Reliance-backed JioMart.
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Looking forward, ElasticRun aims to broaden its horizons by venturing into private-label FMCG products, anticipating higher profit margins ranging from 3% to 6%, compared to industry averages. Management is actively exploring expansion opportunities in logistics, distribution, and the launch of proprietary products via contract manufacturing.
