SUMMARY
- Despite this, the company managed to cut its losses by about 42% to Rs 360 crore.
- ElasticRun saw its gross earnings drop by 48.6% in FY24.
- Its overall expenses fell by 46.7%, down to Rs 2,904.42 crore.
Pune-based unicorn ElasticRun (Ntex Transportation Services Private Limited) saw its gross earnings drop by 48.6% in FY24. Despite this, the company managed to cut its losses by about 42%. ElasticRun pointed to its shift towards high-profit regional brands for the decline.
In FY24, ElasticRun’s total sales or gross merchandise value fell to Rs 2,434 crore, from the Rs 4,738 crore reported in the previous fiscal year, as noted in its annual financial report.
Its revenue from the sale of goods fell by 53.7% to Rs 2,023.19 crore, while services rose slightly by 10.3% to Rs 406.3 crore over the past fiscal year.
ElasticRun earns revenue by offering a distribution system that helps small grocery stores, known as kirana stores, obtain branded products. The company uses technology and logistics to improve distribution, focusing mainly in the rural and semi-urban regions.
It also made about Rs 110 crore from non-mainstream activities like bank savings, profits from selling financial assets, and various other small operations. By the end of the fiscal year, ElasticRun’s total earnings for FY24 stood at Rs 2,544 crore.
Its overall expenses fell by 46.7%, down to Rs 2,904.42 crore from Rs 5,452.79 crore in FY23. The cost of materials dropped by 53.4% to Rs 2, 2015.81 crore, and the expenses related to employee benefits decreased by 27.5% to Rs 250.5 crore, while other expenses were lessened to Rs 585.63 crore.
ElasticRun managed to reduce its losses by 42% from the previous year to Rs 360 crore.
The company has managed to secure $430 million in funding so far and is valued at $1.44 billion. Prosus holds the largest stake, with 21.36% of the shares, followed by Avtaar Ventures and Kalaari Capital. The co-founders, Sandeep Deshmukh, Saurabh Nigam, and Shitiz Bansal, together own 22% of the company.
