B2B Ecommerce Unicorn ElasticRun’s FY22 Loss Widens 3.6X To INR 373 Cr, Revenue Up 3.5X

Kirana-focused B2B ecommerce platform ElasticRun’s total revenue soared 3.5X to INR 3,824 Cr in the financial year 2021-22 (FY22) from INR 1,087 in the previous year. 

The Pune-based unicorn’s revenue from operations rose 253% to INR 3,812.6 Cr from INR 1,081 Cr in FY21.

The startup generates revenue through its tech platform which acts as an extended arm of FMCG companies’ direct distribution networks in rural areas and enables these businesses to reach kirana stores in the hinterlands of the country. It also offers logistics and warehousing services to these small businesses. 

ElasticRun generates a majority of revenue by selling products. It procures products from the FMCG brands and sells it directly to local retail stores in the rural areas.

As per its filings with the Ministry of Corporate Affairs, ElasticRun generated revenue of INR 3,487 Cr through sales of products in FY22, whereas it earned INR 325.4 Cr through sale of services. The startup’s revenue from sales stood at INR 841.5 Cr in FY21, while revenue from services was at INR 293.3 Cr.

In line with the rise in revenue, ElasticRun’s total expenditure surged 3.5X to INR 4,187.2 Cr in FY22 from INR 1,188 Cr in FY21, led by a sharp rise in purchase of stock-in-trade. 

Stock-in-trade refers to the goods that a company purchases for its trade, which would be FMCG products for ElasticRun. In FY22, the startup spent INR 3,431 Cr on purchase of stock-in-trade, a 327% increase from INR 803.6 Cr in the previous year.

Employee benefit expenses also rose 158% to INR 202 Cr from INR 78.3 Cr in FY21. Employee benefit expenses comprise employee salaries, PF contributions, gratuity, and other employee welfare benefits. 

Distribution expenses shot up 74% to INR 417 Cr from INR 239 Cr in FY21. Overall, the startup spent INR 1.09 to earn every INR 1 from its operations.

ElasticRun’s net loss jumped 269% to INR 372.8 Cr in FY22 from INR 101 Cr in FY21, while EBITDA margin contracted to -9.19% from -8.52% in FY21.

Founded in 2016 by Sandeep Deshmukh, Saurabh Nigam and Shitiz Bansal, ElasticRun became the fifth startup to enter the unicorn club in 2022. Back then, the startup raised $330 Mn from Masayoshi Son’s SoftBank, Goldman Sachs Asset Management, Abu Dhabi’s Chimera, Innoven, and Prosus Ventures at a valuation of around $1.4 Bn, Inc42 exclusively reported. 

ElasticRun is connected to 80K villages and provides them access to over 400 brands.  Currently, the startup competes against the likes of Udaan and Dealshare.  While Dealshare’s revenue from operations grew more than 8X to INR 1,932.8 Cr in FY22 from INR 236.7 Cr in FY21, its loss ballooned 543% to INR 431.1 Cr from INR 67 Cr in FY21. Bengaluru-based Udaan saw its revenue from operations climb to INR 9,900 Cr, while it posted a loss of INR 3,075.8 Cr in FY22.