Kirana Commerce Platform
ElasticRun uses a hub and spoke model of warehouses and retail stores to drive distribution through an asset light variable capacity tech enabled platform. Currently, it caters to the FMCG and Ecommerce segments with few other segments in pipeline
Why Did Kalaari Invest in ElasticRun?
A large part of E-Commerce demand will come from upcountry (tier 2+) in the next 5-10 years due to the increase in internet penetration and income levels. This will lead to a huge market – 20x+ growth in shipment volumes.
Fixed capacity models will find it hard to scale since they are Capex intensive and are linear, resulting in an opportunity to create a technology-driven variable capacity logistics business.
The 3 co-founders (Sandeep, Shitiz, and Saurabh) come with deep logistics experience. Sandeep is part of the team that implemented a similar model within Amazon.
Further, once the variable capacity asset-light tech-enabled platform is built for logistics, the same model can be used to distribute multiple products.
Within 2 years of investment, the company added FMCG distribution, which has seen enormous success and has become the core business. Packaged products and medicines could be the following categories to target. Read more