ElasticRun GMV drops 49% to Rs 2,434 Cr in FY24, cuts losses by 42%

ElasticRun (Ntex Transportation Services Private Limited) recorded a 48.6% reduction in gross collections in the fiscal year ending March 2024. The Pune-based company also narrowed its losses by nearly 42% during this period. The unicorn attributed the dip to a pivot toward high-margin regional brands.

ElasticRun’s gross revenue aka gross merchandise value dropped to Rs 2,434 crore in FY24 from Rs 4,738 crore in FY23, according to its standalone financial statement sourced from the firm.

Income from trading goods declined by 53.7% to Rs 2,023.19 crore, while services grew 10.3% to Rs 406.3 crore in the last fiscal year.

ElasticRun generates revenue by providing a distribution network that allows kirana stores to access branded goods. The company leverages logistics and technology to streamline distribution, primarily in rural and semi-urban areas. 

The company also earned approximately Rs 110 crore from non-operating activities including bank deposits, gain on sale of financial instruments and other miscellaneous activities. At the end, it managed Rs 2,544 crore in total gross revenue in FY24.

On the expense side, total expenses decreased by 46.7%, totaling Rs 2,904.42 crore compared to Rs 5,452.79 crore in FY23. Cost of material fell sharply, by 53.4% to Rs 2015.81 crore. Employee expenses also dropped by 27.5% to Rs 250.5 crore, and other costs were reduced to Rs 585.63 crore.

With falling scale, Elasticrun’s losses reduced by 42% year-on-year to Rs 360 crore in the last fiscal year.

The company has raised $430 million to date and is valued at $1.44 billion. According to the data intelligence platform TheKredible, Prosus is the largest stakeholder with a 21.36% stake, followed by Avtaar Ventures and Kalaari Capital. Co-founders Sandeep Deshmukh, Saurabh Nigam, and Shitiz Bansal collectively hold a 22% stake.

Sometimes, numbers hide more than they reveal, and in Elastic Run’s case, that seems true enough. There is no indication yet that the firm’s pivot towards services will play out successfully, even as the significant fund raise helps it change direction for now. That makes the next few operational updates from the Unicorn well worth tracking to throw better light on the success of its pivot.