How ElasticRun Is Transforming India's Rural Retail - Startup Case Study
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- Опубліковано 27 тра 2024
- 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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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.
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
Sahi kaha
@@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
@@MrAmitkr007 they are building script to show themselves as FOOL
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
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...😂😂😂😂
😂
😂😂
👏👏👏😂😂😂
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.
The video creator has no idea, probably hadn't ever seen any kirana store 😂😂
It's a paid promotion bro
There are a lot of distributors those who will come to your door step, and get the products delivered.
Yoo, I was thinking about that and u already commented,nice catch
Instamart ke vajah se city people forgot what kirana stores even are lol.
Transport costs more than the product. Thats pretty much the problem with all FMCG in India.
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.
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..
I totally agree with you. I'm a distributor & I know how distributions in rural areas work.
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
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
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
😂😂😂 dude it's not adultery ..
😂😂@@iamthelegendripper8900
@@iamthelegendripper8900 thanks , changed - adulteration
@@iamthelegendripper8900"lot of aldutery" 😂
Truly inspiring! I hope to see more founders who were born and brought up in rural India.
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
@@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?
Inspiring, Kirana shops doesn't work that way 😂😂😂
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.
Thanks for providing such valuable information about Indian Businesses.
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
Great initiative. It is important to save small kirana store businesses from the giant... Kirana stores is a bread butter earner for many people...
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 😂
@@prabhakar0076 after few years new elders will join like us
@@aj-lan284 yes, but most of them r not greedy or ambitious for profit, like this pseudo startup's
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.
Bro climatic changes definitely makes the mark here for many. They should definitely think as well as in that perspective 😮
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. 🌟
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
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 .
There are major grammatical errors in your comment
@@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.
@@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
@@gajendermalhotra9635 that means you are educated,and we are not
@@termuxhelp3223 relax i never said it neither i am saying you are wrong i am just putting my point
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 !!!
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
Super inspiration
dhanyawad
thanks
Interesting
I could never see a kirana store shutdown for procurement in my villages in Tamil Nadu.
Amazing ❤❤
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.
Sandip sir town is buldhana also in my case same and i am also entrepreneur but fresher....
all the fmcg's have an exceptionally brilliant network in many rural areas. the survey you might have done is limited
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
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
Your case studies are getting more and more detailed 👍🏻👍🏻
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...❤😊
very good example and a model to patten for dw developing the system
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.
Nicely presented
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.
Thank you for listening to your subscribers
We need this type of videos and segments more form you 😊
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.
Great business case study and great work , solving the problems of retailers which is an massive market , do they provide any franchise ?
Not every business operates on a franchise model!
Wasn't the problem you mentioned at the start exaggerated?
If that is the case in certain locations, are they working in those locations?
Sir can make video about infra market.
There would still be delay... or did i miss something?
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.
This is like OYO for kirana stores
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.
Is it just me who found parallels between Think School's content, style and presentations and BwM's?
Who owns the inventory in the mini warehouses?
👌
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..
भारत में लगभग 7 लाख गांव हैं अभी, और 1 लाख तक तो HUL ka भी direct network नहीं है , क्यूंकि इतने छोटे स्तर पर जाने की जरूरत ही नहीं है l दुकानदार पास के कस्बों से सप्लाई प्राप्त कर लेते हैं।😌
Practically they are closing operations state wise..
Impractical operation pattern
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.
Buldhana! That's my district!
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.
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🎉🎉
This is funny, even in rural India no shop keeper will close the store too get the new stock.
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 😊
Won't there be a large portion of commission they'll be charging and it would be a big negative for kirana stores.
in karnataka we have company in same domain named vilcart
Yes jiomart partner
Metro wholesale
Jumbo tail
Udaan
Government should do something about MRP Manipulation Products
They are by-passing Law
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
U understand first : a rural Kirana shop owner even they travel to cities the cost is always huge less..
How this Company make profit ( Commission) in these transactions .
How much you charge generally for a 10 min video like this ?
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
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
HUL Colgate all have strong distribution atleast 90%
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.
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
There are also some other companies..doing same
They shut down all their operations in nashik area.
Naam ku6 jyada hi difficult nhi ho gya from pov of a village kirana store owner
Bhai mera idea chura lia isne to😅😅
EASTERN CURRY POWDER SIMPLY DELIVERS THEIR PRODUCTS RIGHT ON THE DOOR STEP OF A KIRANA STORE, ANYWHERE IN KERALA
Is it direct from Manufacturer?
😮
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.
Everthing is on rent and purchasing at high rate and sales at high rate .....purchasing from local distributor
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.
But companies hv Rural distributor can't they deliver to retailer 🤷♂️
Somebody still has to take the goods from main warehouse to these so called mini warehouses? how is that solved? not clear
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.
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
solar + ev trucks saves them millions
Why are you promoting this such brand ... With 3.0 star rating and just 143 reviews. This business seems failure and next byjus.
First help, them to understand the market then replace them nice model!! 😂
sir aap hindi me video banaye to sabhi aap ki baante samaj payange
for buying kirana,travelling for 60 kms to buy he shuts his shop for 4 days?????
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
Siuuuuu
🤡
This startup will burn all the investors money 😀😂
all rich people done nothing but created a organised online platform
google,amazon,facebook,microsoft etc
Elasticrun owner be like " Itna v fekne ko nai bola tha " 😂
6:28 indian content creator using Bangladeshi Kirana store footage.
🤨😵💫
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
It becomes unsustainable for some before others, as they leave, the competition lowers and the market fixes itself.
@@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)
@@aloksarkar2551 Who can see the future? Throw in a little investment money and move on to the next startup.
This video is nothing more then a promotional video.
Hi people anybody here who is interested to start a business in bangalore or mysore with any brilliant IDEA
Meanwhile bro is living in stone age where humans used to go hunting for 3-4 days!! 😂
We Indian's are ignoring the strength of our rural markets
4700 crore GMV not revenue.
Since when did this channel become amateur
Bhai hindi me bhi banao content
Fail ho jayega ye mere dukan pe ata tha ab band ho gya due to high price