ElasticRun operates in the space of last-mile and middle-mile operations for e-commerce, and primary and secondary distribution for pharma companies
ElasticRun, a logistics network in India that allows customers to run the transportation and supply chain systems in an asset-light mode, has secured US$7 million in Series A round of funding from Kalaari Capital and Norwest Venture Partners.
ElasticRun, owned and operated by Pune-based Ntex Transportation Services, will use the funds to upgrade tech infrastructure, on-board talent and expand operations.
“Indian logistics is considered a high capex and low-tech industry. The challenges and technology requirements are highly customised and contextual to our market. We have the right mix of transportation technology and a seasoned operations team to deliver innovative products for this space,” Sandeep Deshmukh, Co-founder and CEO of ElasticRun said.
Established in March 2016 by Deshmukh, Saurabh Nigam and Shitiz Bansal, ElasticRun is an asset-light transportation network. ElasticRun’s platform can build aggregated transportation capacity in tune with the variations in demand. It eliminates fixed set-up costs by aggregating resources across channels.
The startup, which is currently in the stealth mode, operates in the space of last-mile and middle-mile operations for e-commerce, and primary and secondary distribution for pharma companies.
“Inefficiencies in the logistics function is a major hindrance to growth and profitability of many sectors, including, e-commerce, FMCG and pharma. ElasticRun’s technology and execution engine not only lower logistics costs, but dramatically improve delivery times and customer experience,” said Rajesh Raju, MD at Kalaari.
Logistics has been one of the hottest industries in India that witnessed large investments in the past two years, mainly due to a fast-growing e-commerce space. A few days ago, Delhivery, a leading third-party supply chain services company focused on e-commerce in India, raised more than US$100 million in fresh funding from global alternative asset manager The Carlyle Group, with participation from existing investor Tiger Global. The week before this development, Bangalore-based BlackBuck, an online marketplace for inter-city logistics in India, raised US$70 million in Series C funding from US-based Sands Capital, with participation from existing investors.
A few months ago, rivigo, another leading name in the logistics tech industry, raised US$75 million from Warburg Pincus. DHL eCommerce, a giant in freight logistics, recently committed US$75 million to expand operations in India.
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