ElasticRun: D2C Pivot in India’s B2B Ecommerce

India’s B2B ecommerce sector is rapidly transforming from a fragmented, kirana-led system to a tech-driven, digitized supply chain. The rise of quick commerce platforms is further fueling this evolution, shifting the focus from efficient distribution to rapid fulfillment.

ElasticRun, a unicorn in the space, is adapting to these changes by pivoting towards D2C-led quick commerce enablement.

Founded in 2016 by Sandeep Deshmukh, Saurabh Nigam, and Shitiz Bansal, ElasticRun initially focused on connecting brands to rural consumers through a tech-led distribution network. Operating within India’s $60 billion B2B ecommerce market, the company extended FMCG companies’ direct distribution into the hinterland, addressing supply chain inefficiencies and expanding market reach.

Now, ElasticRun positions its network as a plug-and-play infrastructure layer where brands can place inventory across distributed fulfillment centers. ElasticRun manages the backend, order allocation, picking, shipping, and last-mile deliveries.

This shift is evident in its operating metrics, with the company handling nearly 5 million orders per day. Recent volume growth is largely driven by the focus on faster fulfillment.

According to Deshmukh, the shift towards fast fulfillment has created a supply gap that ElasticRun aims to address. The company is repurposing its network across 500+ cities, with over 900 delivery stations and around 100 fulfillment centers to support this.

Until FY25, ElasticRun’s volumes were mainly driven by large national brands. However, in FY26, the company shifted towards regional brands with better unit economics. Over 70 D2C brands were onboarded in the last six months, with several hundred more expected in FY27.

The company’s pivot towards D2C is driven by demand and a shift in its operating model. While traditional FMCG and enterprise clients offer stable demand, D2C brands introduce higher volatility but significantly higher upside.

Deshmukh noted that D2C brands can help multiply sales within a quarter or a year, making them a strong driver of incremental volumes and network utilization. Unlike its approach with established FMCG players, ElasticRun now operates on a fulfillment-first model with D2C brands, avoiding inventory risk and focusing on execution.

ElasticRun’s current model is rooted in the insight that traditional fulfillment and delivery networks require significant investments in warehousing, fleet, and manpower. Instead of building and owning these assets, the company taps into underutilized warehouses, unused vehicle time, and part-time workforce availability to construct a nationwide network without heavy upfront investment.

The company’s growth can be divided into three phases. Initially, ElasticRun focused on underserved deep rural markets, partnering with ecommerce marketplaces like Amazon and Flipkart. The second phase involved engaging with FMCG companies to support rural distribution, which saw a sharp increase during the pandemic. The current phase is driven by the rise of quick commerce.

While the opportunity in quick commerce-led fulfillment is clear, ElasticRun’s execution track record remains under scrutiny. Some industry sources claim the company faces challenges around service consistency, impacting client retention and volume allocation. However, Deshmukh disputes this, stating that ElasticRun has not lost any enterprise or large clients in the last 12-18 months and has expanded its client base, particularly with the addition of several D2C brands.

Looking ahead to FY27, ElasticRun expects to expand its reach to the top 200 cities and eventually cover all 500 cities by FY28. The company is doubling down on metro markets, where demand density and order velocity are the highest.

ElasticRun’s FY26 was defined by D2C brands becoming the fastest-growing segment in its portfolio. In FY27, same-day delivery is likely to become the standard offering. This presents both an opportunity and a test for ElasticRun, as D2C brands demand higher service reliability and faster execution.