India-based last-mile delivery services provider ElasticRun completed a $40m funding round on Wednesday led by Prosus Ventures, the corporate venture capital arm of consumer internet company Prosus.
VC firm Kalaari Capital and growth-stage investment fund Avataar Ventures also participated in the round. Prosus was spun off from media and e-commerce group Naspers through an initial public offering in September this year, and its CVC unit used to operate as Naspers Ventures.
ElastricRun offers a service that allows small local retailers across 200 Indian cities to store and deliver goods on behalf of online merchants. It aims to increase that network to 1 million stores as it links it to the existing logistics operations of its larger retail customers.
Ashutosh Sharma, Prosus Ventures’ head of investments for India, said: “Naspers has been investing in India for more than a decade, partnering with businesses that are solving big societal needs with technology, in a uniquely Indian way.
“ElasticRun is one of those rare businesses that identified a massive need in the market, matched it with a local solution paired with technology, for the benefit of all parties involved.
“Consumers get faster deliveries and greater choice of goods, store owners realise increased revenues and touchpoints with their customers, and consumer goods companies get better access and insight into their target audiences.”
Kalaari Capital and Norwest Venture Partners provided $2m in seed capital for the company in 2016 before supplying $7m in series A funding in April 2017. They then co-led an $8m round in October 2018 that reportedly valued it at between $60m and $65m post-money.
Recent reports suggested the latest round may be closed at a valuation of about $250m but they have not been confirmed. Avataar Ventures launched in September 2019 with $300m in capital, buying stakes in six Norwest portfolio companies including ElasticRun in the process.
