ElasticRun brings quick commerce to smaller cities
BENGALURU, Dec. 27 -- ElasticRun, which enables FMCG and grocery firms to reach remotest parts of the country, is doubling down on its newly established quick commerce vertical, positioning it as the primary engine for growth in FY26.
The B2B e-commerce unicorn is expanding its network of dark stores to offer two-to-four-hour deliveries in tier-2 and tier-3 towns, to bridge the gap in high-speed urban fulfilment and its traditional rural reach, founder and chief executive Sandeep Deshmukh said.
"The emergence of quick commerce defined 2025 for us. Brands realized the correlation between speed of deliveries and customer experience and focused on rewriting supply chain. We decided to focus on building last-mile capacities for these brands," Deshmukh said in an interview.
The Pune-based company expects this arm to account for 40-50% of its shipment volume by the end of next year, up from its current single-digit share, said Deshmukh.
This strategy shift comes as quick commerce transcends from a mere convenience to become a critical distribution channel for merchants. For many firms, 'instant gratification' is no longer a consumer demand but a competitive necessity to capture households willing to pay a premium for speed. By integrating rapid delivery, ElasticRun enables merchants to capitalize on impulse-driven, high-margin categories like food and home essentials, Deshmukh said.
Over the past two years, ElasticRun has implemented strategy changes to drive better unit economics in a tough macroeconomic landscape. It moved away from large national brands to regional consumer brands to build volume. Now, the company is working on improving adoption of its private labels, especially in tier-2 cities, where consumers are increasingly experimental.
"Our private brands are effective where gaps in certain regions exist. A large part of the introduction of private brands was done last year itself. This year, we focused on deeper penetration of the existing portfolios," Deshmukh noted. Private brands can command margins up to 25%, compared to 5% for other regional brands, improving revenue prospects, according to the executive.
Founded in 2016 by Deshmukh, Shitiz Bansal and Saurabh Nigam, ElasticRun supports FMCG and grocery companies with larger scale and a wider audience. It assists a host of clients including food, general merchandise and pharma companies to reach rural users through its nationwide network of over 900 warehouses and 50,000 on- ground partners.
It also enables banking institutions to extend financial services to consumers beyond urban geographies. Its key partners include Unibic, Lahori Zeera, CavinKare, and Bambino....
To read the full article or to get the complete feed from this publication, please
Contact Us.