HSBC has lowered its valuation estimate for the B2B e-commerce platform ElasticRun to USD 800 million, almost half of the USD 1.5 billion valuation it received during its last funding round in 2022. The startup’s net loss surged by 72 percent in FY23, reaching Rs 618 crore due to high expenses and employee costs.
ElasticRun, established in 2016, sources products from FMCG companies and sells them to local retail stores in rural areas, providing logistics and warehousing services as well.
HSBC also reduced its valuation estimate for Meesho by 14 percent to USD 2.5 billion and for DeHaat by 11 percent to USD 400 million. Indian startups are facing funding challenges, resulting in lower valuations for major players like Udaan and Meesho.
Additionally, Byju’s, once valued at USD 22 billion, raised USD 200 million through a rights issue at a post-money valuation of USD 225 million. HSBC stated that investor Prosus’ stake in Byju’s was now worth zero. Valuation corrections are expected to persist in the startup ecosystem, though there is some optimism that deal flows will normalize in the second half of 2024.
