Use the logistics platform to establish a distribution channel from e-commerce to small grocery stores
Foreign Media News, Indian logistics company “ElasticRun” received $40 million in Series C financing from Prosus, South Africa Ventures led the investment, with Kalaari Capital and Avataar Ventures participating in India. Currently, the company has received a total of $57.1 million in financing.
Founded in 2016, “ElasticRun” strives to establish distribution logistics channels from large suppliers to small grocery stores. This not only expands distribution channels for Indian e-commerce and FMCG companies, but also helps local small grocery stores, Kirana, to improve their purchase and distribution networks.
As a small shop in India, Kirana generally refers to small grocery stores run by families or individuals. These stores are not widely used, and are mostly fast-moving consumer goods (FMCG) such as food and daily necessities. However, Kirana is very popular in India, from the city to the corners of the village, to meet the needs of many consumers daily procurement.
A local Indian Kirana store
Specifically, “ElasticRun” delivers goods from companies such as Procter & Gamble and Amazon India directly to Kilana stores, which are then sold to local consumers by Killana. This move is to ease the contradiction between Indian e-commerce and small shops and provide them with a win-win development momentum.
At present, there are more than 7 million Kirana stores in India, which account for 90% of the market. Most consumers are still willing to go to Killana instead of using an e-commerce platform. E-commerce can’t shake Kilana’s dominant position in the Indian grocery market. Under the premise that ToC is in a bottleneck, how to expand distribution channels to e-commerceTaiwan and the fast-moving brand have raised difficulties.
Kilana is also facing a crisis of survival. Due to the small size, it is often difficult to reach the supplier directly. At the same time, because of the fragmentation independence, distributors are not willing to directly distribute goods for Killana under high logistics costs.
With the “ElasticRun” logistics network, Kirana’s operators no longer have to worry about incoming goods. The professional distribution team will deliver the “ElasticRun” courier and e-commerce platform goods to the door of Kirana’s shop at a lower cost and in a shorter time. With the help of Kirana, the logistics network of “ElasticRun” has also improved the “last mile” distribution channel between e-commerce and FMCG and consumers.
At present, “ElasticRun” works with hundreds of thousands of Killana stores in 200 cities in India to provide them with distribution services. The partnership with Killana also complemented the distribution network for ElasticRun’s major customers, Amazon India and Procter & Gamble. This round of financing will support “ElasticRun” to further build a technology platform to improve the logistics network. In the future, “ElasticRun” plans to expand the distribution network to one million local Killana stores in India.
Working with the grocery store Killana to develop distribution channels is a unique logistics approach to ElasticRun. Competitors are more concerned about other aspects of the logistics industry.
“Rivigo” is India’s leading logistics company, which is more focused on how to use technology to plan a rational and environmentally friendly logistics network. At the same time, the group of truck transport drivers will be cared for and improve their quality of life. “Rivigo” has completed the E round of financing, with a total capital of 250 million US dollars.
“Loadshare” is also developing a logistics supply chain for SMEs. The company’s focus is on how to expand its distribution and efforts Expand logistics business from urban areas to vast rural areas. The company has now completed Series A financing and received $5 million in funding.