INSUBCONTINENT EXCLUSIVE:
Millions of neighborhood stores that dot large and small cities, towns and villages in India and have proven tough to beat for e-commerce
fintech startups are now racing to work with these mom and pop stores as they look to tap a massive untapped opportunity.A Pune-based
startup with an idea to build a logistics network using these kirana stores said today it has won the backing of a major international
Three-and-a-half-year-old ElasticRun said it has raised $40 million in a Series C financing round led by Prosus Ventures (formerly Naspers
Existing investors Avataar Ventures and Kalaari Capital also participated in the round.The startup has raised $55.5 million to date, Sandeep
Deshmukh, co-founder and CEO of ElasticRun, told TechCrunch in an interview.Most of these kirana stores each day go through hours of down
ElasticRun works with hundreds of thousands of these stores across 200 Indian cities to have them deliver goods to other kirana stores and
Nearly every top FMCG brand in the country today is a partner of ElasticRun, said Deshmukh.Deshmukh, co-founder and CEO of ElasticRun,
Stores are getting access to more goods than ever, and also getting the opportunity to increase their business in slow hours
And for brands and e-commerce companies, access to such a wide-reaching delivery pool has never been easier, he said.Deshmukh, who
previously worked at Amazon and helped the e-commerce company build its transportation network in India, said he and his other co-founders
A World Bank report five years ago noted that lorries in India spend about 60% of their time sitting idle.Because there is a digital log of
each transaction, Deshmukh said the startup has a good idea about the financial capacity of these kirana stores
This has enabled it to connect them with relevant financial partners to access working capital, he said.Deshmukh said the startup will use
the fresh capital to on-board more neighborhood stores and deepen its penetration in the country
ElasticRun is also working on new products to expand its offerings for brands and kirana stores and improving its analytics and machine
helping the store owners grow their businesses at the same time
In addition, offering a flexible logistics extension to consumer goods companies to directly reach these small retail shops is a huge
technology, for the benefit of all parties involved
Consumers get faster deliveries and greater choice of goods, store owners realize increased revenues and touchpoints with their customers,
this evening, Deshmukh said while ElasticRun is focused on building solutions, in the future he may consider expanding to some Southeast
Asian markets that are facing similar challenges.
