Shadowfax, one of the largest logistics service providers to hyper-local and on-demand delivery businesses in India, has raised $100 million in a new funding round.
TPG NewQuest Leads Series E Financing Round
TPG NewQuest led Shadowfax’s Series E financing round, which includes some secondary transactions. The startup announced this on Tuesday. TechCrunch reported last year that TPG NewQuest was evaluating an investment in Shadowfax.
Existing Backers Participate in the New Funding Round
Existing backers such as Flipkart, Mirae Asset Venture Investments, IFC, Nokia Growth Partners, Qualcomm, Eight Roads Ventures, and Trifecta Capital also participated in the new funding round. This indicates a strong vote of confidence from these established players in Shadowfax’s growth trajectory.
Tackling India’s Last-Mile Delivery Infrastructure
Shadowfax is tackling India’s highly fragmented last-mile delivery infrastructure. India’s consumer delivery networks are often inefficient and struggle with complex urban environments and inconsistent service quality. This leads to delays, elevated costs, and frustration, especially for small businesses that otherwise don’t have sophisticated delivery capabilities.
Streamlining Logistics Operations through Unification
The Bengaluru-headquartered startup is attempting to streamline logistics operations by unifying disparate elements in India’s last-mile ecosystem. Shadowfax’s network today reaches over 2,500 cities and more than 15,000 zip codes. The company says it makes over 2 million packages delivery each day and has amassed over 3.5 million registered users.
Market Share Gains and Profitability
"As a third-party logistics organization, we have gained market share tremendously over the last 24 months. And we have done so while remaining profitable," Abhishek Bansal, co-founder and chief executive of Shadowfax, told TechCrunch in an interview.
Shadowfax operates a logistics and delivery network of over 125,000 monthly active delivery personnels, and works with numerous firms, including Flipkart, Meesho, and many direct-to-consumer brands. The startup hasn’t lost one customer in five years, Bansal said.
Growth Attributed to Wider Adoption of Quick-Commerce
Bansal attributed the growth to the wider adoption of quick-commerce in India, which he said has helped the startup grow at a 35% rate.
"We have a hyper-local arm as well and that has a huge exposure to quick-commerce firms. We are working with all quick-commerce firms, and any brand that needs to deliver the same day or the day after," he added.
Funding History
Founded in 2015, Shadowfax has raised more than $220 million in primary and secondary transactions.
TPG NewQuest’s Investment
In a statement, Amit Gupta, partner and head of India and Southeast Asia at TPG NewQuest, said Shadowfax is "revolutionizing" the e-commerce logistics sector in India.
Mirae Asset’s First Investment in India
Shadowfax is Mirae Asset’s first investment in India. The venture firm has participated in each subsequent round. Ashish Dave, CEO of Mirae Asset Venture Investments (India), said in a statement:
"We believe that logistics is fundamental to ecommerce and hyperlocal commerce and that it enables the growth of these markets. Abhishek and Vaibhav have done an excellent job in building Shadowfax into a leading player in this space."
Conclusion
Shadowfax’s latest funding round reflects its strong growth trajectory and increasing importance in India’s logistics sector. With a focus on unifying disparate elements in last-mile delivery, the startup is well-positioned to continue its market share gains and profitability.
