ElasticRun, an e-commerce startup that provides supply chain and credit services to India’s mom-and-pop shops or kiranas, raised $330 million in a funding round led by SoftBank Vision Fund 2 and Goldman Sachs Group Inc.
The startup will use the capital to expand into rural areas in over two dozen Indian states, according to a statement from the Pune-based company on Thursday. Chimera and Innoven also participated in the round, as did existing investor Prosus Ventures. ElasticRun is now valued at $1.5 billion, Sandeep Deshmukh, its co-founder and chief executive officer, said via phone.
The company helps neighborhood stores access supplies from big consumer and food brands and makes credit available through its platform. ElasticRun said more than 10 million of India’s 12 million kiranas are in rural markets.
Traditional distributors often avoid serving stores in distant pockets because of high costs involved in shipping small orders.
Sales by rural kiranas will increase to about $600 billion in the next five years, the startup said. ElasticRun was founded by Deshmukh, Shitiz Bansal and Saurabh Nigam in 2016. Its investors also include Kalaari Capital and Avataar Ventures. (Bloomberg)
