HSBC Marks Down ElasticRun Valuation To $800 Mn
HSBC also reduced its valuation estimate for Meesho by 14 per cent to USD 2.5 billion and DeHaat by 11 per cent to USD 400 million
HSBC marked down its valuation estimate for B2B ecommerce platform ElasticRun to USD 800 million, nearly half of the USD 1.5 billion valuation it received during its last funding round in 2022. The startup's net loss increased by 72 per cent in FY23, reaching Rs 618 crore due to high expenses and employee costs.
ElasticRun, founded in 2016, sources products from FMCG companies and sells them to local retail stores in rural areas, providing logistics and warehousing services as well.
HSBC also reduced its valuation estimate for Meesho by 14 per cent to USD 2.5 billion and DeHaat by 11 per cent to USD 400 million. Indian startups are grappling with funding challenges, leading to lower valuations for major players like Udaan and Meesho.
Furthermore, Byju's, once valued at USD 22 billion, raised a USD 200 million rights issue at a post-money valuation of USD 225 million, with HSBC stating that investor Prosus’ stake in Byju's was worth zero. Valuation corrections are anticipated to continue in the startup ecosystem, although there is some optimism about deal flows normalising in the second half of 2024.
