How ElasticRun Is Transforming India's Rural Retail - Startup Case Study

00:00 Intro
01:16 Understanding the Problem
03:29 How three co-founders met?
04:30 ElasticRun's Business Model
08:01 Move towards Profitability
10:06 Learnings
ElasticRun, a unicorn startup, has emerged as a disruptive force in India's rural B2B commerce market. It addresses the longstanding challenge faced by millions of kirana store owners, who struggle to access products due to a broken rural distribution network. Traditional FMCG distribution systems are ineffective in rural areas due to low demand, high setup costs, and lack of delivery infrastructure.
The founders of ElasticRun-Sandeep, Shitiz, and Saurabh-recognized this opportunity to bridge the gap in rural distribution. Leveraging their understanding of the problem and their experience in logistics, they embarked on a mission to revolutionize last-mile delivery in rural India.
ElasticRun's innovative solution involves leveraging existing resources efficiently through technology. They partner with local retailers to use their space as mini-warehouses, reducing real estate costs. By collaborating with local logistics companies on an on-demand basis, they optimize delivery resources without the burden of maintaining a dedicated fleet. This network of micro-distributors enables ElasticRun to reach over 600,000 kirana stores across 120,000 villages, providing a convenient and economical solution for retailers.
Unlike competitors like Udaan and JioMart, ElasticRun does not seek to replace traditional FMCG-distributor partnerships. Instead, they complement existing supply chains, extending the reach of FMCG companies to underserved areas. While Udaan and JioMart focus on larger cities, ElasticRun penetrates deep into rural markets where infrastructure is lacking.
ElasticRun's sustainable business model is evidenced by its financial performance. Despite operating in challenging rural environments, ElasticRun outperforms competitors in revenue and profitability. Their move towards sustainability includes diversifying services, leveraging data insights, and offering credit to kirana store owners with a zero-credit policy.
The case study of ElasticRun offers valuable insights for future entrepreneurs. By tackling complex problems and building a strong moat around their business, ElasticRun demonstrates the power of innovation and perseverance in creating lasting impact and competitive advantage.
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[@kumarrishav1641]

I am a former employee and i can tell you there is fatal flaw. Fmcg has Distribution as moat which elastic run is unable to break. The numbers are also hyper inflated.

[@MrAmitkr007]

Not inspiring at all. The video creator is clueless about how kirana stores operate. No kirana shop shuts down for 3-4 days to procure materials😂😂😂 what a ridiculous theory

[@ankur_.]

Sahi kaha

[@hsarabu2508]

​@@MrAmitkr007Iam a shopkeeper I won't shut my shop even if I got fever one of my family members takes my place. We are in this way running for 50 years this is the first time I heard about elastic run

[@farazfoodnetwork1836]

@@MrAmitkr007 they are building script to show themselves as FOOL

[@roshanthapa8487]

I have never seen kirana store shut. Wife, kid, father, sister etc they would be running. 1st line itself is wron. Stopped watching after first 45 secs

[@Dhvlogs01]

3 to 4 days shut down😂😂😂bro has became blind in sponsorship.....there is always a whole seller in 10 to 50 km ...but this guy choose to go 400 km ....bro thinks rural shops have no mini turk supply chain...😂😂😂😂

[@krishna2001]

0:10 I am a person of Rural area and I know hundreds of kirana store owners but none of them shuts down their store for 3-4 days most they just close of half a day or most of them just let another family member like child , brother wife or father for the time of stocking but never closes their kirana store because of they do so they will lose their customers.Even If they have to travel 60 kms they still don't need that much time to stock up for their store. So brother you have taken completely wrong example.

[@MrAmitkr007]

The video creator has no idea, probably hadn't ever seen any kirana store 😂😂

[@boostyourmarks9188]

It's a paid promotion bro

[@supriyakumarmishra9177]

There are a lot of distributors those who will come to your door step, and get the products delivered.

[@mohdfarhan4456]

Yoo, I was thinking about that and u already commented,nice catch

[@ninadwrites]

Instamart ke vajah se city people forgot what kirana stores even are lol.

[@herp_derpingson]

Transport costs more than the product. Thats pretty much the problem with all FMCG in India.

[@karthickambur1397]

This feels like a artificial problem. I'm also from a village background, my relatives own kirana stores as well.Kirana stores are always filled with products and distribution is there in most of the rural India. Startups founders in urban metro are planning by thier perception and not by actual market understanding.

[@saidinesh9360]

Exactly...People who are having Kirana shops in rural areas can understand what you are saying.. First of all this is not at all a problem..

[@kimouskar7578]

I totally agree with you. I'm a distributor & I know how distributions in rural areas work.

[@aajkyakhaoge88]

Earlier this is the same mentality in city market people so amazon and flipkart breaked it now they are purchasing into bulk direct from company and providing it to the rural kirana stores they are breaking the middle men mainly

[@yomamasohot6411]

Truly inspiring! I hope to see more founders who were born and brought up in rural India.

[@MrAmitkr007]

Not inspiring at all. The video creator is clueless about how kirana stores operate. No kirana shop shuts down for 3-4 days to procure materials😂😂😂 what a ridiculous theory

[@yomamasohot6411]

@@MrAmitkr007 i don't care about the video. I'm talking about the entrepreneuer. Do you think these FMCG companies have penetrated markets all across rural India?

[@prabhakar0076]

Inspiring, Kirana shops doesn't work that way 😂😂😂

[@ide_A]

Couple of questions: 1. How is adulteration of products ensured 2. In rural areas, people make connections better, whats stopping people to make their own clientele and ditch ElasticRun 3. Warehouses are important because they are designed to store products in the right way as mentioned by the manufacturers, the local warehouses dont do that So, Ultimately since theres very less scrutiny in rural areas, I think theres a lot of adultery, a lot of improper storage, and loosing business

[@iamthelegendripper8900]

😂😂😂 dude it's not adultery ..

[@fex_indian]

😂😂​@@iamthelegendripper8900

[@ide_A]

@@iamthelegendripper8900 thanks , changed - adulteration

[@rajeshchatterjee8446]

Thanks for providing such valuable information about Indian Businesses.

[@MrAmitkr007]

He's clueless about business. 60 km travel karne k liye koi apna dukan 3 din band nahi karega😂😂 saale video banane se pahle kuchh to dimag laga le

[@LearnThroughVideos]

Great initiative. It is important to save small kirana store businesses from the giant... Kirana stores is a bread butter earner for many people...

[@prabhakar0076]

Small kirana stores r generally run by elders, who get some money, time pass with Locals and make them busy (as exercises). Generally limited products, light weight and daily use products R maintained, which r supplied by Dealers.Some vegetables etc So they go Nowhere until the elder gets bored 😂

[@LearnThroughVideos]

@@prabhakar0076 after few years new elders will join like us

[@prabhakar0076]

@@LearnThroughVideos yes, but most of them r not greedy or ambitious for profit, like this pseudo startup's

[@francisaranha6514]

Wait… this was a problem? In my region, there is a decentralised system where products list is collected by individual first from Kirana store and then a truck comes and delivers all good one by one. This has been happening for more then 15 years now. Damm!! I need to see problems solved in other areas and consider if its solved i. Large scale or not.

[@EcomCarl]

ElasticRun's innovative approach to solving rural distribution challenges in India is truly transformative. Leveraging local entrepreneurs for delivery is not only efficient but also empowers communities, turning logistical challenges into opportunities for growth. 🌟

[@user-dr6pm4oq5t]

elasticRun -very excellent idea for the rural people helping for long term profitibility in rural areas(kiranas)....if they are not making profit from old ideas ....just innovate, make low cost products ....help rural customer and kirana owner...so really WIN-WIN as for as the indian (small business) overall system in concerned.

[@nickjones2813]

I'm from rural Kerala but here we have strong distributors, no one closes their shops for restocking, daily lot of mini trucks cover these shops on different products. Actually I have seen there is a competition in distributors itself as they ask to stock up from them at a discounted price. Location plays a major role in these startup ideas. This won't work well in Kerala because here there is no distribution issues. This is a very well pitched idea but the execution method made it successful as of now. This is a great case study

[@termuxhelp3223]

I am from West Bengal and we using elasticrun company more than 3 year . But finaltial year 2023 August this company can't sustainable on our coochbehar district. Because the reason is , this company can't hire write persons and they can't provide all type of grossory items .

[@gajendermalhotra9635]

There are major grammatical errors in your comment

[@ashwinb6435]

@@gajendermalhotra9635I understand what he is saying . Writing in correct English is not a problem here. He is highlighting a problem in model which requires to be checked. If you think it’s not a problem plz give data points and make him understand.

[@gajendermalhotra9635]

@@ashwinb6435 my point is no matter how good you are how good your course is in a country like India somebody will always have a problem that doesn’t mean you should innovating but still some people say that this course was useless where same thing works for somebody else so that’s my point

[@termuxhelp3223]

@@gajendermalhotra9635 that means you are educated,and we are not

[@gajendermalhotra9635]

@@termuxhelp3223 relax i never said it neither i am saying you are wrong i am just putting my point

[@chakoleindustrieslimited388]

dhanyawad thanks

[@rajveer9414]

Super inspiration

[@Shashikantingle]

Very inspiring video, it often happens in rural areas, if an item is required from the grocery store, it is not available. Shopkeepers say that the goods will be available in a day or two. But due to the ELASTIC RUN company, the grocery shopkeepers in the rural areas have got a very good arrangement. Goods of a well branded company can be found in rural areas everyday. The CEO of this company is a person who knows the difficulties of rural life. This company works from that awareness. Best of luck !!!

[@namecapital5201]

no one shuts kirana store for 3-4 for restocking their items like you will get out of stock in every week there are 4 weeks in month and you can't run your business by closing it for 15 days

[@hshariprasad7141]

I want to know from where you gather all the details about a startup across various sectors regarding their fundings? Is it crunchbase or something else! Please do let me know.

[@doctorjyot]

What is more needed to move farm products, perishable food items from rural areas to city consumption area. It can solve farmers problems, avoid wastage

[@anwin7229]

Amazing ❤❤

[@phanindra40]

My friends do this distribution, they go to each and every village and every shop. Go and sit in one Kirana shop and notice how many distributor agents come there. Each and every FMCG company has these dealers. The agent comes in a tata ace literally sits in the Kirana with a book and pen. May be capturing, eliminating local distributors may reduce operation cost. I only see the data being more valuable than other earnings. In addition, giving loans to retailers based on past purchase data can also add to it.

[@Sid_2691]

Yes I to worked in FMCG marketing I faced these problems daily Merchant's ready to buy products in rural areas but delivery partners not ready to deliver far from cities because of transportation they cancel orders merchant waiting for his products he didn't get delivery they get so angry and scold us if we complain also don't get issue solved And some of merchants they don't even need much quantity Ex: in some stores they sell Pepsi Coco cola 7 up soft drinks etc They have to buy each 28 pieces that much not required and they don't have fridge to store They ask 3 or 4 pieces each brand in one basket if this problem solved by Elasticrun they will make more business And other brands basket of all products is one solution

[@shubhamkothawade7610]

all the fmcg's have an exceptionally brilliant network in many rural areas. the survey you might have done is limited

[@subodhdhoke5548]

iam also a store owner and i didn't shut my store for 4-5 days. My father just give me the list and i travel only 6km to buy it. And in rural or in urban area there are mostly wholesale store which are in 10 to 20km in radius

[@rajdeepsen3011]

Great business case study and great work , solving the problems of retailers which is an massive market , do they provide any franchise ?

[@user-kb9tz7pp9y]

Not every business operates on a franchise model!

[@hridyamjain2]

Interesting

[@hishubhamcoolrawat]

Wasn't the problem you mentioned at the start exaggerated? If that is the case in certain locations, are they working in those locations?

[@nileshnakhawa3119]

Make a video on how to register as kirana store with an elasticrun...that will be more beneficial to the company and kirana store as well...❤😊

[@rohitk4544]

Your case studies are getting more and more detailed 👍🏻👍🏻

[@Champromio]

There are some problems in this sectors when it comes to traditional distribution. But the intensity of the problem is highly inflated in this video. I worked as a distributor for 3years, I know this area in details.

[@creativemedia.]

In one 1 call every product reached to our shop. For only Sudden demand only we will travel. Shuting a 3 day means, A festival or traveling some other place any other region.

[@bunny8704]

We need this type of videos and segments more form you 😊

[@nikhilsaiponna7612]

In rural india there are distributors and they give product on credit base and so called brand's profit margin is less compare to local produced has greater margin and help local kirana earn more money.

[@MdArshadAliAli-hk3xt]

Sir can make video about infra market.

[@MonuKumar44444]

Thank you for listening to your subscribers

[@riteshk9879]

There would still be delay... or did i miss something?

[@rajshekhar1147]

No kirana owner closes shop. Family members take care when owner goes to buy. Moreover, most of the items are delivered at shop by stockists.

[@THE69MEMES]

in karnataka we have company in same domain named vilcart

[@Sid_2691]

Yes jiomart partner Metro wholesale Jumbo tail Udaan

[@arvind50]

👌

[@suhailmahedavi2204]

Who owns the inventory in the mini warehouses?

[@bruhmoment3644]

Buldhana! That's my district!

[@yomamasohot6411]

Founder cchotya town madhna asnya cha haach faida aahey. Tennach kalta rural India chya garza. Aami Mumbai/Pune wale lokanna avghad aahey samaz na. Rural areas madhlech pora rural India cha naksha badlau shaktat.

[@kartikeyaagnihotri3947]

👏👏👏

[@themartian54]

Is it just me who found parallels between Think School's content, style and presentations and BwM's?

[@venkateshe232]

🎉🎉

[@PriyakantPanwar]

Government should do something about MRP Manipulation Products They are by-passing Law

[@sanskargupta2416]

Won't there be a large portion of commission they'll be charging and it would be a big negative for kirana stores.

[@devasish21]

This story is more like OYO business.. without owning any properties they run hotel business.. Here wirthout owning warehouse or distribution vehicle this business is going good..

[@rajeshpillai1367]

This video and content is just taking advantage of the fact that data from the rural places are hard to collect and validate Therefore companies with fancy names get free propoganding 😊

[@rohitkulkarni8026]

Iam also work with elasticrun for long , their is many flaws in management in Erun. You just notice that any project Erun get not work more than 1 _ 2 year. Because Erun get pricing at very low cost from client so hire ver less manpower and resources with very low salaries and high expectations. However because of this employees do anethical thing to earn some extra money and this happen from top to bottom management.

[@memerunner]

This is like OYO for kirana stores

[@yaswanthkollipara2134]

This is funny, even in rural India no shop keeper will close the store too get the new stock.

[@prasenjitnandi3608]

U understand first : a rural Kirana shop owner even they travel to cities the cost is always huge less..

[@satishnaik5822]

This company even provide loans to their retailers ,they have their data and all 😊 it will be a billion dollar business,similar to bharat pe

[@KushalBanjara-xn8xy]

How this Company make profit ( Commission) in these transactions .

[@mohdhashir1520]

If they are filling up the void in logistics system in rural area then it's ok and if they are disrupting already B2B logistics distribution then it is definitely going to ruin the life of small distributors in villages

[@vachan7069]

The FMCG chemicals would reach rural area faster , peopleuse more & the ecology of village is poisoned & grey water starts generating more like its in cities but villages have no sewage treatment plants in all FMCG products(shampoos, hairproducts, cosmetics,soaps,detergents, paste, bath wash clean products diapers, plastic wates of containers etc). Consequence of FMCG reaching rural kiranas

[@siddharthshanker580]

Its like a handiplast over the problem. It wont have a major impact. Only right approach is taken by govt of India which is to develop transport logistical hubs, now private parties can further develop cold storages and ware houses.

[@aditya16in1]

Smallest of the small village is not too far away from its taluka & all talukas have wholesalers that supply to villages. . I have experienced that.

[@georgechacko8063]

EASTERN CURRY POWDER SIMPLY DELIVERS THEIR PRODUCTS RIGHT ON THE DOOR STEP OF A KIRANA STORE, ANYWHERE IN KERALA

[@shreeram8859]

Is it direct from Manufacturer?

[@SMCGPRA]

HUL Colgate all have strong distribution atleast 90%

[@ysr1766]

There are also some other companies..doing same

[@ajaydani6763]

They shut down all their operations in nashik area.

[@siddharthkadam7350]

😮

[@sicmanda]

Naam ku6 jyada hi difficult nhi ho gya from pov of a village kirana store owner

[@syedmaseer4381]

But companies hv Rural distributor can't they deliver to retailer 🤷‍♂️

[@rahulrrakvi7201]

Why can't Indian postal services diversify to sell all fmcg sachets across the country via their network? It would simply make them stronger and also reduce dependency on amazon and other private startups. That means that desh ka paisa desh ke janta ke liye rahega. Because Amazon transfers its profit to US and majority of the startup founders do scam in long run and become abscounding abroad with investors money.

[@user-wn5ub9hp4v]

Everthing is on rent and purchasing at high rate and sales at high rate .....purchasing from local distributor

[@Systumm00013]

Bhai mera idea chura lia isne to😅😅

[@balajikarli1034]

sir aap hindi me video banaye to sabhi aap ki baante samaj payange

[@digvii]

You need to study to create such videos. For eg. in village the nestle have a dealer nearby who serves the local small store. I believe they already solved it. No need of any middle man now.

[@shivenzone]

Siuuuuu

[@divyanshugoyal9818]

🤡

[@tomallen3790]

Why are you promoting this such brand ... With 3.0 star rating and just 143 reviews. This business seems failure and next byjus.

[@jiti5034]

Somebody still has to take the goods from main warehouse to these so called mini warehouses? how is that solved? not clear

[@prabhakar0076]

6 lakhs kirana stores in 1.2 lakh villages 😂😂😂. ie 5 stores in a village,even a small town has 100 stores. Remote village has 3 to 4 shops. I think they r just install app and claim as customers 😂😂😂 Bcos my chacha runs a kirana store in remote village and it's not just groceries, they sell important items of Hardware, Bakery, Handloom and whatnot. That's a different system all together with tight relations with villagers

[@jinesh6165]

Bhai hindi me bhi banao content

[@MasudRanabd]

6:28 indian content creator using Bangladeshi Kirana store footage.

[@sankuM]

🤨😵‍💫

[@AS-td9rj]

First help, them to understand the market then replace them nice model!! 😂

[@kyachannelhey5895]

As a Former Employee I spot a lie before even videos Started Why would anybody Shut down thair store for 3-4 Days Believe me they Don't close Even on Sunday or festival

[@namecapital5201]

all rich people done nothing but created a organised online platform google,amazon,facebook,microsoft etc

[@nseniftybankniftytrader4086]

for buying kirana,travelling for 60 kms to buy he shuts his shop for 4 days?????

[@shubhamchauhan00]

This video is nothing more then a promotional video.

[@shreenidhinayak198]

4700 crore GMV not revenue. Since when did this channel become amateur

[@kali786516]

solar + ev trucks saves them millions

[@aloksarkar2551]

This buisness is only a temporary solution, sure, until the consumption is low, they can earn some margin, the moment competition arrives, it would become unsustainable. And if by chance they sustain themselves on some locations, by increasing consumption, then reliance & others would enter those market. Thus making it unsustainable again. So yes, there is opportunity, but only for limited time

[@herp_derpingson]

It becomes unsustainable for some before others, as they leave, the competition lowers and the market fixes itself.

[@aloksarkar2551]

@@herp_derpingson Sure, but not necessarily the Pioneer (in this case elasticrun) would stay, all comes down to who has deeper pockets, And after that the second scenario kicks in (of large retailers coming to the established market)

[@herp_derpingson]

@@aloksarkar2551 Who can see the future? Throw in a little investment money and move on to the next startup.

[@xeimetzerv8140]

Elasticrun owner be like " Itna v fekne ko nai bola tha " 😂

[@drake66668]

Elasticrun is an loss making company 😂 Just visit some of its warehouse and check company growth 😂

[@nileshmalu297]

This is true... They are shutting down in most places in Western Maharashtra..

[@drake66668]

@@nileshmalu297 In Karnataka also

[@jiti5034]

To get stuff form 60 km away one has to shut shop for 3-4 days??? and that too you are talking about well connected state like Maharashtra? you are joking? if the potential is to loose "Thousands " of rupees over 3-4 days I am sure he can employ somebody from his family and NOT shut the shop.. the basic funda is not good

[@rishabhhariyani9132]

Meanwhile bro is living in stone age where humans used to go hunting for 3-4 days!! 😂

[@sunilkumar-tc3mf]

Hi people anybody here who is interested to start a business in bangalore or mysore with any brilliant IDEA

[@vishalgadge4338]

We Indian's are ignoring the strength of our rural markets

[@sudheerkumarpeddi7036]

Before giving this much of hype to Elasticrun, request to go to elasticrun warehouses near you as unknown person and ask how they are running there business, later you definitely delete this video

[@user-ws6wo3gw7w]

Sir I am from Assam how i can contact you

[@HFTtraderVijayvarma1104]

May they gave money to this person that's the reason he is doing video with wrong example

[@sachindudhane]

Elasticrun yani n tex, ab Khali chocolate , chips, bech Rahi he kirana maal 1 sal se Dena band kar diya

[@Christiansadrienglishhindisong]

Sab Emply ki maar lii kirana --Job mil nhi raha Aisa halt h

[@saidinesh9360]

Where is the distance of 100 km...All products are available with in 3 to 5km range...we have Kirana shop in my home town..people who have Kirana shop only can understand what I am saying..

[@ShreshthSingh-zv2jn]

Fail ho jayega ye mere dukan pe ata tha ab band ho gya due to high price

[@sashirkl]

Will be in loss very soon

[@fhsh531]

It's an ad lmao