SoftBank-led funding more than triples ElasticRun’s valuation to $1.5 billion

BUSINESS DESK: ElasticRun, a kirana-focused business-to-business ecommerce firm, has raised $300 million in a new funding round led by SoftBank Vision Fund II.

Goldman Sachs has joined as a new investor in the fundraising that trebles the Pune-based company’s valuation to $1.5 billion, according to regulatory filings and people aware of the transaction. The company had last raised $75 million in April 2021 at a valuation of more than $400 million. With this, ElasticRun has become the sixth unicorn so far this year.

The latest fundraising also includes a secondary share sale of around $32 million, taking the total round size to $332 million, sources said. In a secondary share sale, new investors buy shares from existing investors and the money does not go to company coffers.

According to regulatory filings by ElasticRun’s parent Ntex Transportation Service, SoftBank has put in $180 million in the company. Its shareholding now stands at 14%. Existing investors Prosus Ventures and Abu Dhabi’s Chimera Investments also participated in the fundraising. Kalaari Capital and Avatar Ventures are its other backers.

ElasticRun didn’t immediately respond to ET’s request for a comment on Monday night.

Started in 2016 by former Amazon executives Sandeep Deshmukh, Shitiz Bansal and Saurabh Nigam, the company enables small kiranas across the country to source goods, especially in the FMCG space, from leading brands. It also offers working capital, analytics services and aggregation of fulfilment services. It also works with leading ecommerce firms like Amazon India to reach customers in rural markets through its kirana network that helps in delivery of goods as well.

According to its website, it helps FMCG brands reach 10 million kiranas. Britannia, Coca-Cola, ITC, Tata Consumer, Reliance Retail, Dabur, and Procter & Gamble are among the 100 brands ElasticRun works with. It is present in 28 states across over 500 locations. (The Economic Times)