elasticrun: B2b Firm Elasticrun Raises $330mn From Softbank, Others | India Business News – Times of India

elasticrun:  B2b Firm Elasticrun Raises $330mn From Softbank, Others | India Business News - Times of India


BENGALURU: B2B rural e-commerce platform ElasticRun has raised $330 million in a funding round led by SoftBank and Goldman Sachs Asset Management. The round also saw participation from Chimera and Innoven, along with long-term investor Prosus Ventures. The company is said to have been valued at about $1.4 billion.
ElasticRun was founded by Sandeep Deshmukh, Shitiz Bansal, and Saurabh Nigam in 2016. The company acts as an extended arm of FMCG companies’ direct distribution networks in rural areas. It also connects banks and financial institutions to underserved SME customers from its rural kirana network.
India has over 12 million kirana shops, of which 10 million are in rural markets. These rural stores remain underserved by consumer brands due to the high-cost structures of traditional distribution networks, and smaller ticket sizes.
The investment would be deployed by the firm to expand its rural reach. ElasticRun will also use the funds to expand its services like credit facilities for retailers.
Sandeep Deshmukh, cofounder, and CEO, said, “Through the pandemic, our robust logistics and channel framework ensured uninterrupted supply and support to our rural kirana partners. We have been growing at a rapid pace and are consistently expanding our store network across India.”
ElasticRun estimates that sales in kirana stores across rural markets will grow to $600 billion over the next five years.
The platform provides more than 300 brands with insights by unlocking data about rural commerce.
Narendra Rathi, vice president in SoftBank Investment Advisers, said, “With its deep reach in rural India and tech-led platform, we believe ElasticRun is well-positioned to unlock the next wave of e-commerce.”


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