ElasticRun Set to Raise $300M in SoftBank-Led Round

ElasticRun, a kirana commerce platform helping businesses connect with rural India, is expecting to raise $300 million in a funding round led by SoftBank, according to a report Wednesday (Jan. 19) from The Times of India.

Three sources told the news outlet that SoftBank is set to invest around $200 million, with the additional funding coming, in part, from Goldman Sachs and existing investor Prosus. The company’s valuation could be over $1 billion in that case.

ElasticRun was founded in 2016 by Sandeep Deshmukh, Shitiz Bansal and Saurabh Nigam. The company works as an extended arm of the fast-moving consumer goods (FMCG) companies’ distribution reach.

According to the company, out of the 12 million kirana stores in India, traditional distribution networks reach around 2 million. ElasticRun uses data from kirana stores to predict demand, helping companies cut down costs and reach more customers.

In April of last year, ElasticRun was valued at $400 million. At that time, it was able to raise $75 million.

Earlier this month, PYMNTS reported that SoftBank had invested $146 million into South Korean artificial intelligence (AI) firm Qraft, with objectives of helping it expand into the U.S.

See also: SoftBank Makes $146M Bet on AI Firm Qraft

Qraft reportedly manages $1.7 billion for Asian banks and insurance providers through a lineup of funds traded in the U.S. The companies didn’t disclose Qraft’s valuation.

The company has 50 employees and most of them work on the company’s AI project. Employees own around a third of the business, and outside investors control the rest. According to U.S. CEO Robert Nestor, SoftBank now makes up a huge portion of that.

The Wall Street Journal reported that asset managers used to be skeptical about AI, but they’re hoping data analysis tools can help justify things. Qraft has reportedly been on SoftBank’s radars since around 2020, at which time the firm had considered it for a Vision Fund investment.