February 17, 2022
Pune, 17 February 2022 – ElasticRun, a B2B eCommerce platform enabling access to millions of rural Indian kirana shops, announced the closing of a US$330 million funding round led by SoftBank Vision Fund 2 and Goldman Sachs Asset Management. The latest round also saw participation from Chimera and Innoven along with long-term investor Prosus Ventures
The investment will help the company expand its rural reach into 30+ states, enabling over a million kirana (neighbourhood retail) shops to conveniently access big consumer brands and food brands through its e-commerce platform. ElasticRun will also use the funds to expand its services nationally like credit facilities for retailers to enhance the value and experience offered by the kirana stores to their customers.
India has over 12 million kirana shops across the country of which 10 million are in rural markets. ElasticRun is democratising physical and digital access to Indian consumers by helping businesses reach traditionally unserved consumers through neighbourhood retail stores across the deepest rural pockets of India. These rural stores remain underserved by consumer brands due to the high-cost structures of traditional distribution networks, rural kirana store’s long distances from the cities and small order sizes.
Sandeep Deshmukh, ElasticRun co-founder and CEO, said, “We are proud of the transformational impact of our business, which has empowered rural store owners and consumers across the length and breadth of the country. 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. We are delighted to have Softbank and Goldman Sachs join us in the journey to bring more rural kirana retailers and rural consumers to participate in the digital revolution underway in India.”
ElasticRun estimates that sales in kirana stores across rural markets will grow to US$600 billion over the next five years. The company has grown rapidly over the years and continues to bring the power of e-commerce to rural consumers through its tech-first approach to serving this segment. The platform provides more than 300 brands with actionable insights by unlocking data about rural commerce.
Narendra Rathi, Vice President, SoftBank Investment Advisers, said, “We have always been excited to back founders who provide unique solutions for the local market. 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. We have been closely tracking the company and have been impressed by their growth, focus on unit economics and value creation for kirana store partners & brands.”
Rajat Sood, a managing director at Goldman Sachs Asset Management, said, “We are strong believers of the company’s vision to transform India’s supply chain for kirana stores using technology, and have been impressed by the execution capabilities of the team. We look forward to supporting ElasticRun as it continues to grow and bring positive impact to its customers.”
Ashutosh Sharma, Head of Investments, India, Prosus Ventures, said, “At Prosus Ventures, we partner businesses that are using technology to solve big societal needs. ElasticRun is enabling huge transformation in rural India’s supply-chain ecosystem. The team has continued to build steadily while focusing on operational metrics and enhancing the value proposition for their partners. We are proud to be a long-term partner and continue to support their growth ambitions.”
ElasticRun is the B2B eCommerce Platform, enabling businesses to reach small Kirana stores in the deep rural parts of India. The company acts as an extended arm of FMCG companies’ direct distribution networks in the rural area to provide a set of net new customers to the FMCG companies. ElasticRun also helps eCommerce companies reach customers in far-flung areas through its network of rural Kirana stores. It brings banks and financial institutions closer to a set of new underserved SME customers from its rural Kirana network. ElasticRun was founded by Sandeep Deshmukh, Shitiz Bansal and Saurabh Nigam in 2016. The company’s existing investors include Prosus Ventures (formerly Naspers Ventures), Kalaari Capital and Avataar Ventures.
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), Goldman Sachs Asset Management delivers investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market overseeing more than $2 trillion in assets under supervision worldwide as of December 31, 2021. Driven by a passion for clients’ performance, Goldman Sachs Asset Management seeks to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Since 2003 the Growth Equity business within Goldman Sachs Asset Management comprising more than 75 individuals has invested over $13 billion in companies led by visionary founders and CEOs. Goldman Sachs Asset Management focuses exclusively on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare