ElasticRun, operated by Ntex Transportation Services Private Limited, experienced a significant shift in its financials for the fiscal year ending March 2024. The Pune-based logistics platform reported a 48.6% decrease in gross collections, while managing to cut its losses by nearly 42%, reflecting a strategic move towards high-margin regional brands.
The company’s gross merchandise value (GMV) fell sharply to Rs 2,434 crore in FY24, down from Rs 4,738 crore in the prior year, as detailed in its latest standalone financial report. ElasticRun’s income from goods trading dropped by 53.7% to Rs 2,023.19 crore, although its service-based revenue saw a 10.3% increase, reaching Rs 406.3 crore during the same period.
ElasticRun’s business model revolves around providing rural and semi-urban kirana stores with access to branded products through an optimized distribution network. The company combines technology and logistics to create a more accessible supply chain for these underserved regions. In addition to operational revenue, ElasticRun earned approximately Rs 110 crore from non-operating sources, such as interest from bank deposits and gains on financial instruments, resulting in a total gross revenue of Rs 2,544 crore for FY24.
Cost-saving measures were evident across multiple expense categories. Total expenses fell by 46.7% to Rs 2,904.42 crore, down from Rs 5,452.79 crore in FY23. The cost of materials decreased by 53.4% to Rs 2,015.81 crore, while employee-related expenses saw a reduction of 27.5% to Rs 250.5 crore. Additionally, miscellaneous costs were reduced to Rs 585.63 crore.
The company’s strategic realignment translated to a 42% year-on-year decrease in losses, narrowing them to Rs 360 crore for the year.
ElasticRun has raised a cumulative $430 million, with a valuation of $1.44 billion. According to data from TheKredible, Prosus remains the top shareholder, holding 21.36%, followed by Avtaar Ventures and Kalaari Capital. The company’s co-founders—Sandeep Deshmukh, Saurabh Nigam, and Shitiz Bansal—retain a 22% collective stake.
While the pivot towards service revenue is in early stages, it will be crucial to monitor ElasticRun’s future updates to assess the impact of this shift. The unicorn’s path forward in rural distribution could either validate its strategic pivot or reveal further adjustments needed to achieve sustained growth.
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