ElasticRun Improves Revenue and Scales Operations

ElasticRun, a leading kirana-commerce and logistics platform, has effectively stabilised its operations in the fiscal year ending March 2025 after experiencing a notable revenue decline of nearly 49% in the previous year. During this period, the company also achieved a significant reduction in losses.

ElasticRun’s Financial Metrics for FY25

In FY25, ElasticRun’s gross merchandise value (GMV) saw a 9% increase, reaching Rs 2,653 crore, compared to Rs 2,435 crore in FY24, as reported in its consolidated financial statements obtained from the Registrar of Companies (RoC). The company’s revenue model centres around providing a distribution network that allows kirana stores to conveniently access branded products. ElasticRun employs advanced logistics and technology to optimise distribution, primarily targeting rural and semi-urban regions, while also expanding into key urban centres.

Revenue Breakdown

Income from traded goods, which contributes 82% to the total operating revenue, increased by 7.4%, totaling Rs 2,172 crore in FY25. Additionally, income from services experienced a notable rise of 17.5%, reaching Rs 477 crore during the same period. Including other income sources, the total income for ElasticRun amounted to Rs 2,766 crore in FY25, compared to Rs 2,545 crore in the previous fiscal year.

Expense Overview

On the expense front, the cost of materials represented ElasticRun’s largest expenditure, comprising 73% of the total expenses. This cost rose by 5.1% to Rs 2,118 crore in FY25. However, employee benefit expenses saw a reduction of 17.2%, totalling Rs 207 crore. Furthermore, freight, handling, and servicing expenses increased modestly by 4.8%, amounting to Rs 457 crore in FY25. Overall, the company’s total expenses showed a slight increase of 0.2%, culminating at Rs 2,911 crore in FY25, up from Rs 2,904 crore in FY24.

Losses and Profitability Metrics

Efforts to optimise costs and boost higher-margin service revenue allowed ElasticRun to reduce its losses by 60%, bringing them down to Rs 145 crore in FY25 compared to Rs 360 crore in FY24. The return on capital employed (ROCE) and earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins improved to -16.96% and -8.44%, respectively. On a per-unit basis, ElasticRun’s spending decreased to Rs 1.10 to earn a rupee, showing an improvement from Rs 1.19 in FY24.

Financial Position and Investments

At the end of FY25, ElasticRun reported cash and bank balances of Rs 643 crore, alongside current assets of Rs 1,566 crore and total assets amounting to Rs 1,659 crore. To date, ElasticRun has successfully raised a total of $461 million in funding, with Prosus and Avataar Ventures serving as its primary investors, holding 21.36% and 18.68% stakes in the company, respectively.