There’s a lot of buzz in India about e-commerce, but companies that help modernise traditional kirana stores appear to be unlocking some serious value as well.
ElasticRun, a kirana-tech startup that connects businesses to kirana stores, has raised $300 million in a new funding round led by SoftBank Vision Fund II, making it India’s latest unicorn. The $1.5 billion round valued the six-year-old startup. ElasticRun has more than tripled in value in the last ten months, making it India’s sixth unicorn this year, following MamaEarth, Fractal Analytics, LEAD School, Darwinbox, and Dealshare.
Former Amazon executives Sandeep Deshmukh, Shitiz Bansal, and Saurabh Nigam founded Elasticrun in 2016 to help businesses reach 1.2 crore kirana stores across India. By providing credit, data analytics, a transaction platform, and a crowdsourced fulfilment service, Elasticrun’s platform connects brands like Britannia, Unilever, and even e-commerce companies like Amazon and Flipkart with kirana stores. Through its partner-driven logistics network, Elasticrun assists businesses in reaching these kirana stores. It also aggregates stores, making kirana stores’ small individual demand viable. Elasticrun is a low-cost, high-capability alternative to traditional distributors and retailers that helps businesses reach kirana stores.
ElasticRun may not yet be a household name, but its reach is already extensive: the company operates in 28 Indian states and collaborates with over 500 brands, including ITC, Reckitt Benckiser, P&G, Dabur, and Patanjali. Over 80% of its partner stores are located in rural areas.
However, there is plenty of competition in the space: startups like Udaan are attempting to disrupt traditional distributors and wholesalers by directly supplying stores with products, while companies like JioMart are attempting to connect directly with India’s millions of kirana stores. Traditional wholesalers and distributors have reacted angrily to this, protesting and boycotting some FMCG brands for allowing tech companies to intrude on their turf.
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