Logistics startup ElasticRun has raised $7 (Rs.47 Crore) Million of Series A funding from existing investors Kalaari Capital and Norwest Venture Partners. Previously, in November 2016, the startup raised Seed funding of $2 Million from the same investors. The startup raised the total amount of $9 Million.
The Pune-based startup was founded in the year 2015 by Shitiz Bhansal, Sandeep Deshmukh, Saurabh Nigam. ElasticRun is operated under NTex transportation services, which appears to be building a similar app-based asset-light model for receiving orders and dispatching delivery drivers. ElasticRun is building next-generation transportation technology that will power the e-commerce and distribution industry of India.
Sandeep Deshmukh, CEO of ElasticRun said: “What we offer potential customers is that they don’t have to spend CapEx on building fixed-capacity logistics setups. They can latch on to our platform and do away with the need for any setup cost. This platform allows the brand owners to focus on core products and do away the concerns about managing the variability in demand.”
ElasticRun will use the funds to further build its technology infrastructure, on-board talent and expand operations. The startup, which has largely been in stealth mode, will use the proceeds to further build its technology infrastructure, on-board talent and expand operations.
Kalaari is a venture company investing in technology-related companies in India. The venture capitalist has recently backed other Indian Startups like Purpule, Airpay, POPxo, Urban Ladder and much more.
Commenting on the investment, Rajesh Raju, managing director, Kalaari Capital said, “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.”
Norwest is a global venture capital and growth equity investment firm that manages more than $6B in capital. The California-Based firm targets early to late stage venture and growth equity investments across a wide range of sectors including technology, information services, business services, financial services, consumer products/services and healthcare.
Mohan Kumar, executive director, Norwest Venture Partners India said: “We invested in the ElasticRun team because of their relevant experience, having worked at DHL and Amazon. Their technology and network-centric approach to optimise the path of goods as they travel across different touch points make them very unique.”
Logistic startups have been constantly increasing their funding.A research by Novonous says, according to the ‘Logistics Market in India 2015-2020’, the country’s logistics industry is worth $300 Billion and is estimated to grow at a CAGR of 12.17 percent by 2020. Read more about Indian Startup Ecosystem.