Can D2C Be ElasticRun’s Most Profitable Bet Yet?

SUMMARY

• D2C brands are emerging as the fastest-growing segment, driving higher volumes, better network utilisation, and stronger growth momentum for ElasticRun
• The company is shifting to a fulfilment-first, asset-light model, leveraging 900+ delivery stations and 100 fulfilment centres to improve scalability and margins
• Success will depend on consistent execution, especially as shipment volumes grew approximately 40% YoY and two-hour delivery expectations intensify competition in quick commerce

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India’s B2B ecommerce segment has rapidly evolved from a fragmented, kirana-led system into a tech-driven, digitised supply chain. But with the unabated rise of quick commerce platforms, the industry is undergoing yet another transformation.  

The focus has shifted from efficient distribution to rapid fulfilment, with expectations moving from next-day delivery to same-day and even sub-two-hour timelines. This is pushing players to decentralise inventory, build hyperlocal networks, and prioritise speed, flexibility, and real-time execution.

ElasticRun is a key example of this. The unicorn is reworking its playbook by pivoting towards D2C-led quick commerce enablement. 

Founded in 2016 by Sandeep Deshmukh, Saurabh Nigam and Shitiz Bansal, the company built its early thesis around connecting brands to rural consumers through a tech-led distribution network. 

Initially positioned within India’s $60 Bn B2B ecommerce market, ElasticRun operated as an extension of FMCG companies’ direct distribution in the hinterland, solving supply chain inefficiencies and enabling deeper market reach. 

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

This transition is already visible in its operating metrics. ElasticRun currently handles close to 5 Mn orders per day, with recent volume growth largely driven by the shift towards faster fulfilment.

“The biggest inflexion came last year as everyone shifted towards fast fulfilment. While traditional models still exist, there are very few large-scale partners available for same-day or two-hour delivery,” said Deshmukh, pointing at a clear supply gap that the company is looking to address yet again.

To support this shift, the company is repurposing its network across 500+ cities, with 900+ delivery stations and around 100 fulfilment centres. 

The shift is also reflected in its customer mix. Until FY25, ElasticRun’s volumes were largely driven by large national brands. In FY26, the company moved towards regional brands with better unit economics. 

“We have seen a strong momentum from D2C brands. Over 70 D2C brands were onboarded in the last six months, with several hundred more expected in FY27,” the founder added. 

So, what does the unicorn’s shift to D2C really mean? 

ElasticRun’s D2C Route

While the company’s pivot towards D2C is driven by demand, it also reflects a shift in its operating model and economics. Traditional FMCG and enterprise clients offer stable, predictable demand but limited scope for growth. In contrast, D2C brands introduce higher volatility but significantly higher upside.

“D2C brands can help multiply sales within a quarter or a year, which makes them a strong driver of incremental volumes and network utilisation,” Deshmukh noted.

He, however, added that the way ElasticRun engages with these brands is fundamentally different. For established FMCG players, the company has historically operated as a B2B distribution engine, at times even taking ownership of inventory for brands with stable throughput. With D2C, it shifts to a fulfilment-first model, avoiding inventory risk while focusing on execution.

“Our fulfilment network is available… you deploy your inventory into our fulfilment centres, and from that point onward, we handle everything — order allocation, picking, shipping, and delivery,” Deshmukh said.

He added that the model is structurally lighter on working capital, more scalable and ‘increasingly attractive from a margin perspective’. Higher growth among D2C brands directly improves network utilisation, driving operating leverage. The unit economics are strong, and more importantly, the model scales rapidly.

For brands, the value proposition extends beyond speed. ElasticRun claims to have seen improvements in fill rates, lower returns, and better customer retention, all of which directly impact D2C unit economics in a competitive market.

From Capex-Heavy Logistics To Asset-Light Networks

ElasticRun’s current pivot is rooted in a foundational insight from its early days. Deshmukh, who was part of the early leadership team at Amazon India, had first-hand visibility into what it takes to build a nationwide logistics backbone.

The conclusion was clear: traditional fulfilment and delivery networks require significant investments in real estate for warehousing, fleet, and manpower.

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