Pune: B2B e-commerce player 'ElasticRun' has reported its fiscal year 2024 financial results, showcasing a substantial reduction in losses by nearly 50% to ₹350 crore.
A major contributor to ElasticRun’s improved financial health is its pivot towards high-margin regional brands. This adjustment has reshaped ElasticRun’s sales portfolio, with over 90% of revenue now generated from high-margin products.
Enhanced take rates—tripling those from last year—have strengthened the company’s gross margins despite a decline in gross merchandise value (GMV) for FY24.
Sandeep Deshmukh, Co-Founder & CEO of ElasticRun, commented on this strategic shift, saying, “We realigned our platform to focus on high-margin regional brands, and it has transformed our platform into a national growth catalyst for these brands.”
ElasticRun’s private label business has also gained traction, now contributing 20% to overall sales, bridging assortment gaps, and further boosting revenue and profitability.
Dominance in Logistics Sector and Quick Commerce Expansion
In the logistics space, ElasticRun continues to lead as a preferred partner for India’s largest e-commerce companies.
The company is also making significant strides into quick commerce, launching a multi-faceted approach that includes partnerships with established players and the development of a white-label quick commerce network.
This expansion will allow direct-to-consumer (D2C) brands to offer rapid and reliable delivery solutions, a key growth area expected to strengthen ElasticRun’s logistics business.
Technology Platform Drives New SaaS Revenue Stream
In FY24, ElasticRun introduced its technology platform as a Software as a Service (SaaS) product, leveraging a system that has supported over 2 billion shipments.
Within a few months, the platform has attracted numerous enterprise customers, including major e-commerce and D2C brands, creating a new revenue stream while highlighting the stability of its technology infrastructure.
Ankit Gadia, ElasticRun’s Chief Financial Officer, underscored the company’s strong financial standing, attributing it to disciplined execution and efficient capital management, supported by significant cash reserves and a prudent capital allocation strategy.
Gadia noted, “We continue to invest in our logistics technology and B2B rural e-commerce divisions to drive sustainable, profitable growth in the competitive market.”