ElasticRun which is a Logistics and distribution startup is now in talks to secure $50-$55 million led by the Naspers which is a South African Internet and Media Group player, valuing at around $250 million, according to the report.
Pune based ElasticRun is an asset-light transportation network that caters to industries which include online retail, consumer goods, automotive, manufacturing, and hospitality.
The company which is based on a shared economy concept, local couriers, small and medium businesses, aggregates spare logistics infrastructure capacity from the businesses like Kirana stores to fulfill customer orders.
Since as of now it does not own warehouses or any of the delivery center, the cost structure is variable an on a “per delivery basis” just like the traditional logistics players.
Thus, this significantly reduces the capital required to build a national-level network, eliminates capacity wastage in lean periods and loss of business at the time of a spike in demand. Even though this network would have high per unit variable cost, its net spends on logistics would be much lower than the fixed cost networks.
“Naspers believes that this model is the most capital-efficient way to build a technology logistics network in India. The intent for Naspers is to double down on the investment in the next six to eight months,” said one person directly aware of the deal.
ElasticRun was founded by the Sandeep Deshmukh, who is a former senior executive at Amazon India, and Saurabh Nigam and Shitizz Bansal who were both with the EdgeVerve, the employees of Infosys Subsidiary.
ElasticRun competes with the LoadShare into the market, which is backed by the Stellaris Venture Partners and Matrix Partners, which was founded by the Raghuram Talluri, the top executive of Myntra.