B2B e-commerce company Elastic Run's valuation estimate has been cut by HSBC to $800 million, according to a report by the Economic Times.
The B2B e-commerce company is backed by SoftBank and Prosus. In a statement, the company said: “ElasticRun Network helps e-commerce companies reach customers in remote rural areas through its crowdsourced logistics network.”
This extensive reach is made possible by its ElasticRun technology platform, which supports a crowdsourced, “capex-free” and “variable cost” logistics network, according to the company. The ElasticRun platform leverages rural Kirana networks to deliver trade, finance, and data from India's $600 billion consumer market, according to the company's website. Its customers include Pidilite, Unilever, Dabur, Colgate, Britannia, Godrej, and Marico.
Read: CHOSEN Raises $1.2 Million in Seed Funding Round
In 2022, ElasticRun raised $330 million at a valuation of $1.5 billion. The funding round was led by SoftBank Vision Fund 2 and Goldman Sachs Asset Management. Long-term investor Prosus Ventures also participated in the round.
Elastic Run's losses nearly doubled in FY23. The unicorn's net loss grew 72.57% YoY to Rs 6,188.2 crore from a loss of Rs 3,585.9 crore in FY22.
HSBC also said Prosus's roughly 10% stake in edtech platform Byju's, worth roughly $500 million, was worthless. According to the Economic Times, HSBC said it “values Byju's at zero amid multiple lawsuits and financial difficulties.” Edtech platform Byju's has seen its valuation plummet amid a protracted financial crisis and investor tussle. For example, Byju's investor Blockstone recently zeroed out its investment in the edtech company.
Additionally, the firm lowered its valuation estimate for Meesho by 14% to $2.5 billion, and agricultural technology startup DeHart's valuation by 11% to $400 million.
