ElasticRun, a virtual logistics network provider, on Wednesday said it has raised USD 40 million (about Rs 284 crore) in funding led by Prosus Ventures (formerly Naspers Ventures).
The funding round, which also saw participation from existing investors Avataar Ventures and Kalaari Capital, will help ElasticRun expand its network, a statement said.
ElasticRun's services are already available in over 200 Indian cities and are built on its network of small convenience stores. ElasticRun enables small store owners to handle local last mile deliveries. At the same time, it works with consumer goods companies to offer a plug-n-play distribution network.
The company aims to extend this network to a million stores in the near future, a statement said.
"ElasticRun will also use the new funds to further build its technology platform to accommodate new product lines, expand the platform to additional categories, and to evolve its analytics and machine learning platforms to handle national scale," it added.
The last mile problem is still a major issue both for logistics and consumer goods companies in India and by working with the network of small stores, ElasticRun solves that problem while helping the store owners grow their businesses, ElasticRun co-founder and CEO Sandeep Deshmukh said.
"In addition, offering a flexible logistics extension to consumer goods companies to directly reach these small retail shops is a huge advantage over traditional distribution networks, he added.
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