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Economic Times
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B2B ecommerce firm ElasticRun narrows losses by 42% in FY24; revenue drops 49%
- ElasticRun, a business-to-business (B2B) ecommerce platform, decreased its net losses by 42% to Rs 359.6 crore in FY24, down from Rs 619 crore the previous year, as its revenue scale declined.
- The revenue from operations declined by 48.6% to Rs 2,434.8 crore in FY24, compared to Rs 4,738.02 crore in FY23.
- CEO Sandeep Deshmukh said that ElasticRun shifted its strategy to focus on high-margin local and regional brands in FY24, which drove improved profitability metrics.
- ElasticRun’s high-margin portfolio now comprises over 90% of its sales, with this group achieving nearly three times the take rate compared to the previous year's assortment.
- The company's total expenses also fell to Rs 2,904.3 crore in FY24 from Rs 5,452.7 crore in FY23.
- ElasticRun is expanding into quick commerce by building its own multitenant quick commerce network. The network will enable direct-to-consumer (D2C) and other commerce players to offer rapid delivery options.
- The platform operates approximately 800 dark stores across India, which support its B2B operations as well as last-mile deliveries, with the flexibility to be repurposed for the quick commerce needs of D2C brands.
- Besides its core business, the company has launched its software-as-a-service (SaaS) platform to enable ecommerce and D2C brands to manage order origination and delivery.
- ElasticRun last raised $330 million in funding, led by SoftBank Vision Fund 2 and Goldman Sachs Asset Management, with participation from Chimera, InnoVen Capital, and Prosus Ventures.
- The move toward profitability and support for regional brands comes as the B2B ecommerce sector in India experiences a shift amid the quick commerce wave.
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