ElasticRun Narrows FY25 Loss By 60% to INR 145 Cr ElasticRun Narrows FY25 Loss By 60% to INR 145 Cr

ElasticRun’s operating revenue surged 8% to INR 2,653 Cr in FY25 from INR 2,435 in FY24

Including other income of INR 112.9 Cr, ElasticRun’s total income stood at INR 2,765.8 Cr in FY25 as against INR 2,544.8 Cr

Its total expenditure remained almost flat at INR 2,910.9 Cr in FY25 as against INR 2,904.40 Cr in the previous year

Business-to-business (B2B) ecommerce solutions provider ElasticRun managed to narrow its loss in the fiscal year FY25 by 60% to INR 145.1 Cr from INR 359.6 Cr in the previous year.

The startup’s operating revenue surged 8% to INR 2,653 Cr in FY25 from INR 2,435 in FY24.

Including other income of INR 112.9 Cr, ElasticRun’s total income stood at INR 2,765.8 Cr in FY25 as against INR 2,544.8 Cr.

Founded in 2016 by Sandeep Deshmukh, Saurabh Nigam and Shitiz Bansal, ElasticRun’s tech platform acts as an extended arm of FMCG companies’ direct distribution networks in rural areas and enables these businesses to reach kirana stores in the hinterland.

The startup generates revenue through its tech platform which acts as an extended arm of FMCG companies’ direct distribution networks in rural areas and enables these businesses to reach kirana stores in the hinterlands of the country. It also offers logistics and warehousing services to these small businesses.

ElasticRun generates the majority of its revenue by selling products. It procures products from FMCG brands and sells them directly to local retail stores in rural areas.

In an interaction with Inc42, Deshmukh described FY25 as the best financial year for the company in terms of becoming operationally profitable. He added that while the company did see higher GMV in the past few years, the margins were lower.

This has now transformed to higher margins from local brands which will possibly drive ElasticRun to profitability. “Yet, we won’t become EBITDA profitable very soon, because we are still focussed on growth,” he mentioned.

The Pune-based company’s total expenditure remained almost flat at INR 2,910.9 Cr in FY25 as against INR 2,904.40 Cr in the previous year.

ElasticRun kept its expenses across categories under check, helping improve its financial position.

Employee Benefit Expenses: Employee costs decreased by 17% to INR 207.6 Cr in FY25 from INR 250.5 in FY24. This reduction reflects the company’s efforts to streamline operations and improve efficiency.

Purchases of Stock-in-Trade: The largest cost component, purchases of stock-in-trade, witnessed a 5% increase to INR 2,117.70 Cr in FY25 from INR 2,015.81 in FY24.

Freight, Handling and Servicing Costs: The startup’s expenses under this head increased  5% to INR 457.1 Cr from INR 436.6 Cr in FY24.