Kirana commerce unicorn ElasticRun narrows losses by 60% in FY25

ElasticRun, a kirana-commerce and logistics platform, stabilised its scale in the fiscal year ending March 2025 after a sharp contraction in the previous year when its revenue had declined by nearly 49%. The company significantly narrowed its losses during the same period.

ElasticRun’s gross revenue (GMV) increased 9% to Rs 2,653 crore in FY25, up from Rs 2,435 crore in FY24, according to its consolidated financial statements sourced from the Registrar of Companies (RoC).

ElasticRun generates revenue by providing a distribution network that allows kirana stores to access branded goods. The company leverages logistics and technology to streamline distribution, primarily in rural and semi-urban areas, though its footprint has spread to key cities as well now.

Income from traded goods, which forms 82% of the operating revenue, grew 7.4% to Rs 2,172 crore in FY25. Income from services surged 17.5% to Rs 477 crore in FY25. Including other income, the company’s total income stood at Rs 2,766 crore in FY25, compared to Rs 2,545 crore in the previous fiscal.

On the expense side, cost of materials was ElasticRun’s largest expense, accounting for 73% of the total expense. To the tune of scale, this cost increased 5.1% to Rs 2,118 crore in FY25. Employee benefit expenses declined 17.2% to Rs 207 crore. Freight, handling and servicing costs rose modestly by 4.8% to Rs 457 crore in FY25.

Overall, the company’s total expenses rose marginally by 0.2% to Rs 2,911 crore in FY25, compared to Rs 2,904 crore in FY24. For a more detailed expense breakdown, refer to TheKredible.

The optimization of costs and improvement in high-margin service revenue enabled ElasticRun to narrow its losses by 60% to Rs 145 crore in FY25 from Rs 360 crore in FY24. Its ROCE and EBITDA margin improved to -16.96% and -8.44% respectively. 

On a unit basis, ElasticRun spent Rs 1.10 to earn a rupee during the year, improving from Rs 1.19 in FY24. The company recorded cash and bank balances of Rs 643 crore, while its current assets stood at Rs 1,566 crore and total assets at Rs 1,659 crore in FY25.

According to TheKredible, ElasticRun has raised a total of $461 million of funding till date, having Prosus and Avataar Ventures as its lead investors who own 21.36% and 18.68% of the company respectively.