Shadowfax, a hyperlocal logistics startup, secured $100 million in its latest funding round led by growth investor TPG NewQuest. Existing investors, including Mirae Asset Management, Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital, also participated, along with an element of venture debt.
As part of the transaction, early backer Eight Roads Ventures, which first invested in 2015, made a partial exit.
The company plans to use the funds to expand its last-mile delivery services, aiming to cover 20,000 pincodes across India. Looking ahead, Shadowfax is set to introduce intercity operations in the next three quarters.
A part of the raised funds will be allocated to develop cutting-edge services for direct-to-consumer (D2C) brands and to further enhance Shadowfax’s express delivery network. The company made this announcement in a statement on Tuesday.
“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 a marquee investor on board only adds to our confidence in what we’re building,” said Abhishek Bansal, cofounder and chief executive of Shadowfax.
Established in 2015 by IIT Delhi alumni Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya, Shadowfax has evolved from being an on-demand logistics provider for food delivery to catering to ecommerce clientele like Meesho.
The platform claims to handle the delivery of 2 million packages daily through its network of 125,000 monthly active delivery partners.
“We have been impressed with the tech stack they (Shadowfax) 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,” said Amit Gupta, partner and head of India and Southeast Asia, TPG NewQuest.
Shadowfax asserts that it achieved three consecutive quarters of Ebitda (earnings before interest, taxes, depreciation, and amortization) profitability in the current financial year from April to December 2023.
The company aims to conclude FY24 as its inaugural full financial year with positive Ebitda, (after accounting for ESOP costs).
