The revenue from operations declined by 48.6% to Rs 2,434.8 crore in FY24, compared to Rs 4,738.02 crore in FY23.
According to CEO Sandeep Deshmukh, the company pivoted its strategy to focus on high-margin regional brands in FY24, which helped drive improved profitability metrics.
“This year has been a pivotal year for us. We made a major shift towards regional and local brands in the quest for profitability. And this pivot has paid handsomely for us. We have been able to bring down our losses by almost half. There has been a GMV impact at an annual level, but on the March ending annualised run rate level, we have recovered our sales numbers at the substantially improved gross margin levels,” said Deshmukh.
He added that ElasticRun’s high-margin portfolio now comprises over 90% of its sales, with this cohort achieving nearly three times the take rate compared to the previous year’s assortment.
The company’s total expenses also fell to Rs 2,904.3 crore in FY24 from Rs 5,452.7 crore in FY23.
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ElasticRun is also expanding into quick commerce. While collaborating with existing quick commerce players, the company is building its own white-label quick commerce network. Deshmukh said that this multi-tenant quick commerce network will enable direct-to-consumer (D2C) and other commerce players to offer rapid delivery options to their customers.The platform operates a network of approximately 800 dark stores across India. These stores support its B2B operations as well as last-mile deliveries, with the flexibility to be repurposed for the quick commerce needs of D2C brands.
Based in Pune, ElasticRun connects kirana stores with consumer goods brands, providing these stores easier access to a broad range of products. Its platform aggregates demand from small retailers and streamlines supply chains to serve often-underserved markets.
In addition to its core business, the company has launched its software-as-a-service (SaaS) platform to enable ecommerce and D2C brands to manage order origination and delivery.
“Opening up our tech stack as a SaaS platform is a key step towards de-risking our revenue streams. This also aids our journey towards profitability since this is a high gross margin business,” Deshmukh said.
ElasticRun last raised $330 million in funding, led by SoftBank Vision Fund 2 and Goldman Sachs Asset Management, with participation from Chimera, InnoVen Capital, and long-term investor Prosus Ventures.
This comes when the B2B ecommerce sector in India is experiencing a shift, with a stronger emphasis on profitability and support for regional brands amid the quick commerce wave.
On Monday, another B2B ecommerce platform, Udaan, announced it had closed a Rs 300 crore debt round from Lighthouse Canton, Stride Ventures, InnoVen Capital, and Trifecta Capital.