Flipkart was already working with Shadowfax for deliveries
Shadowfax connects delivery executives to businesses for last-mile logistics
This will be the third investment for Flipkart in the logistics sector
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In a move to enhance its doorstep delivery ahead of the festive season, Flipkart is reportedly close to investing in logistics startup Shadowfax. The company is said to be in advanced talks to invest $40 Mn in the Bengaluru-based startup.
Shadowfax connects delivery executives to ecommerce companies, and small and medium businesses to help fulfil last-mile logistics needs as well as overnight deliveries. The company was founded in 2015 by IIT Delhi graduates Abhishek Bansal and Vaibhav Khandelwal to provide instant deliveries across the country.
It works with ecommerce, restaurants, FMCG, epharmacies, and other online and offline retailers. The company’s clients include Domino’s, Big Basket, Amazon, PayTM, Flipkart, Myntra, McDonald’s, 1MG, and many others, including smaller restaurants, merchants, and retailers.
Shadowfax claims to have a delivery network in over 200 cities, with 1K vehicles, 2K merchants, over 15K delivery partners. The company says it processes more than 2 Lakh transactions a day. It also provides services like hyperlocal delivery, same-day delivery for orders in the same city, and next-day delivery outside.
The startup had last raised $22 Mn (INR 138 Cr) at a valuation of $80 Mn (INR 573 Cr) in an investment round led by NGP Capital. Other investors included International Finance Corporation, Mirae Asset, Eight Roads Ventures and Qualcomm Ventures. Prior to this funding, Shadowfax had raised $18 Mn in three funding rounds.
The company raised $10 Mn in Series B round of funding in December 2016, and $8.5 Mn in Series A that took place in September 2015. Shadowfax had stated with a $3 K angel funding in August 2015. If Flipkart invests in the company, its valuation will go up by $200 Mn.
This will be Flipkart’s third investment in a logistics company. Earlier, the company had invested in import-export aggregator BlackBuck and smart locker provider QikPod to improve customer experience.
By investing in Shadowfax, Flipkart can easily partner up with the company to use its fleet management technology to boost its strategic initiatives like hyperlocal grocery deliveries and medicine delivery.
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