B2B Ecommerce Startup ElasticRun Trims Losses To Rs 350 Cr In FY24

ElasticRun, a B2B ecommerce platform, today releases its financial results for fiscal year 2024 reporting progress toward profitability, reducing losses by almost half to Rs 350 crore. 

A key driver behind the improved financial performance was ElasticRun’s pivot to supporting high-margin regional brands. This shift has transformed the company’s sales mix, with over 90 per cent of sales now coming from high-margin products. The enhanced product portfolio, coupled with a threefold increase in take rates compared to the previous year’s assortment, has significantly boosted ElasticRun’s gross margins, even as gross merchandise value (GMV) declined in FY24.

Sandeep Deshmukh, Co-Founder and CEO of ElasticRun said "We strategically realigned our platform to focus on high-margin regional brands, and this shift has worked exceptionally well for us. Our platform now serves as a powerful launchpad for these brands, enabling them to expand far beyond their home market and scale nationally”.

ElasticRun’s private label business also saw strong growth, now contributing nearly 20 per cent of the company’s total sales. The introduction of private label products has allowed the company to address assortment gaps in key markets, further boosting revenue and profitability.

The company is making its foray into quick commerce through a multi-pronged approach, collaborating with existing players and developing its own white-label quick commerce network. This initiative aims to help direct-to-consumer (D2C) and other commerce players offer faster and reliable delivery options to their customers. With quick commerce poised to drive significant growth, the company anticipates it to be a critical building block of its logistics business.

ElasticRun’s technology platform, which has powered over 2 billion shipments, was introduced as a SaaS offering in FY24. In just a few quarters, the platform has onboarded more than several large enterprise customers, including some of the biggest names in e-commerce and D2C sectors. This new revenue stream highlights the stability and maturity of ElasticRun’s technology infrastructure.

Commenting on the company’s strong financial position, Ankit Gadia, CFO of ElasticRun, said "Our focus on capital efficiency, coupled with disciplined execution, has put us on a strong footing. We continue to maintain one of the strongest balance sheets in the industry with significant cash reserves and a prudent capital allocation strategy. We continue to invest in our LogisTech and B2B rural ecom business to achieve profitable, sustainable and competitive growth."