Shadowfax Raises $100 Mn To Expand Its Last Mile Delivery Services

SUMMARY

The funding round was led by PE major TPG NewQuest and also saw participation from existing investors like Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital

The logistics major initiated the funding round back in 2022 at a valuation of $632 million

Eight Roads Ventures, one of the company's earliest investors, made a partial exit from the logistics services provider

Logistics services startup ShadowFax on Tuesday (February 27) said it has raised $100 Mn (INR 828.78 Cr) as a part of its Series E funding round led by TPG NewQuest, with participation from existing investors like Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm and Trifecta Capital.

The round also gave a partial exit to the startup’s first institutional investor from 2015, Eight Roads Ventures.

The startup said that it will use the capital to further fortify its middle-mile network and extend its last-mile delivery services.

Founded in 2015 by Vaibhav Khandelwal and Abhishek Bansal, it provides hyper-local and on-demand deliveries to businesses.

As of November, the startup claimed to be operational in 15,000 pin codes across the country and processes 15 Lakh orders a day. With the fresh funding, the startup has plans to expand its operations pan-India in all 20,000 pincodes.

“Shadowfax is revolutionising the e-commerce logistics sector in India. We have been impressed with the tech stack they have built. This helps with the delivery of superior service metrics and allows them to quickly adapt their services to client’s changing needs at the lowest price,” TPG NewQuest’s India and SEA head Amit Gupta said.

“Our ability to capture a greater share of the market, even in a tough economic climate, is a testament to the core strength of our business. Now having another marquee investor on the board only adds to our confidence in what we’re building,” Shadowfax’s CEO Abhishek Bansal said.

Notably, the startup works with ecommerce platforms like Flipkart and Meesho.

Shadowfax reported a net loss of INR 142.63 Cr in the fiscal year 2022-23 (FY23), down 19% year-on-year (YoY), while total income rose 42% YoY to INR 1,423 Cr.