Shadowfax, one of the leading logistics companies serving hyper-local and on-demand delivery businesses in India, has recently announced raising $100 million in a new funding round. This comes as the company continues to see impressive yearly growth of 35%.
TechCrunch reported last year that funding from TPG NewQuest was being considered by Shadowfax for their Series E financing round.
TPG NewQuest has now led the investment, which also included some secondary transactions. The startup also received continued support from existing investors such as Flipkart, Mirae Asset Venture Investments, IFC, Nokia Growth Partners, Qualcomm, Eight Roads Ventures, and Trifecta Capital.
Shadowfax is focused on revolutionizing the fragmented last-mile delivery infrastructure in India. This country’s consumer delivery networks often face inefficiencies and challenges in navigating complex urban environments and maintaining consistent service quality. As a result, there are frequent delays, increased costs, and frustration, especially for small businesses that lack sophisticated delivery capabilities.
The Bengaluru-based startup aims to streamline logistics operations by bringing together various elements of India’s last-mile ecosystem.
Today, Shadowfax’s network spans over 2,500 cities and covers more than 15,000 zip codes. The company boasts an impressive daily delivery rate of over 2 million packages and has accumulated a registered user base of over 3.5 million.
“As a third-party logistics organization, we have experienced tremendous market share growth in the last 24 months. And we have achieved this while maintaining profitability,” shared Abhishek Bansal, co-founder and chief executive of Shadowfax, in an exclusive interview with TechCrunch.
Shadowfax currently operates a logistics and delivery network comprising over 125,000 monthly active delivery personnel. The company works with a variety of businesses, including Flipkart, Meesho, and numerous direct-to-consumer brands. Despite facing challenging times, Shadowfax can proudly say that they have not lost a single customer in their five years of operation.
Bansal credits the company’s growth to the rising popularity of quick-commerce in India, which has contributed to a 35% year-over-year increase for Shadowfax.
“Our hyper-local arm also plays a significant role, as it caters to quick-commerce companies. We work with all quick-commerce firms, as well as any brand that requires same-day or next-day delivery,” Bansal added.
Founded in 2015, Shadowfax has accumulated over $220 million in primary and secondary investments.
“Shadowfax is revolutionizing the e-commerce logistics sector in India. We are excited to support the company in their future endeavors,” stated Amit Gupta, Partner and Head of India and Southeast Asia at TPG NewQuest in a press release.
Mirae Asset Venture Investments, Shadowfax’s first investor in India, has continued to participate in each subsequent funding round.
“We believe that logistics is crucial for the growth of e-commerce and hyper-local commerce sectors. Abhishek and Vaibhav, together with their team, have built a highly scalable platform and have consistently delivered even during challenging times,” said Ashish Dave, CEO of Mirae Asset Venture Investments (India).
“Over the last five years, they have invested in expanding their network and organization while also meeting the right financial metrics.”
