ElasticRun, a kirana-focused business-to-business logistics, and commerce startup has turned India’s seventh unicorn this year after raising $300 million in a new funding round led by SoftBank Vision Fund II.
According to regulatory filings and sources familiar with the transaction, American investment bank Goldman Sachs has joined as a new investor in the funding round that triples the Pune-based company’s valuation to $1.5 billion. The round also featured participation from Innoven Capital, Prosus Ventures, and Chimera Investment, a subsidiary of Abu Dhabi’s Royal Group. The startup last secured $75 million in April 2021, at a valuation of over $400 million.
ElasticRun has issued 19,958 Series E CCPS to these investors in order to raise Rs 2,259.7 crore, according to regulatory filings. The Series E offering is open for subscription until March 21 of this year, suggesting that the company may raise additional capital, the filings added. Japanese conglomerate SoftBank has invested around $180 million (~Rs 1,342 crore) through its subsidiary SVF II Eagle LLC, while Prosus Ventures has invested around $54.79 million (~Rs 409 crore) through its affiliate Naspers Ventures BV, according to regulatory filings. Chimetech Holding Ltd and Goldman Sachs respectively invested $30.14 million (~Rs 225 crore) and $4.64 million (~Rs 34.64 crore). The proceeds will be used to expand and grow the company’s operations, the regulatory filing said.
Post the funding round, Sandeep Deshmukh, Saurabh Nigam, and Shitiz Bansal co-founders of ElasticRun will control 12.7 percent, 7.5 percent, and 7.5 percent of the company. Meanwhile, after the recent stake sale, Prosus Ventures would own 22.2 percent of the company.
ElasticRun is a technology platform that aggregates transportation capacity based on the needs of its customers. It was founded in March 2016. By aggregating resources across channels, the company claims to be able to eliminate fixed setup expenses, allowing its customers to minimize capital on logistics. The firm claims to serve customers in the e-commerce, food, pharmaceutical, and automotive sectors. In addition, the startup works with banks and financial institutions to provide them with access to underserved SME businesses through its Kirana network. The platform also facilitates Kirana businesses in optimizing their marketing approach using data analytics.
ElasticRun claims to have operations across 28 states, 500 locations and has teamed with 500 brands. It also works closely with Amazon, Reliance Retail, Wipro, ITC, Hindustan Unilever Ltd. (HUL), Procter & Gamble (P&G), ITC, Marico, Britannia, Pidilite, among other major brands. The Pune-based company competes with B2B e-commerce leading players including social commerce platform unicorn Meesho, IPO-bound startup Udaan, and recently turned unicorn Dealshare, among others.