Shadowfax raises $100 million from TPG NewQuest, Flipkart and others

Logistics startup Shadowfax has raised $100 million (Rs 820 crore) in its Series E round led by TPG NewQuest.

Existing investors including Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation (IFC), Nokia Growth Partners, Qualcomm, and Trifecta Capital also participated in the round, says an official release.

"Eight Roads Ventures, the company’s first institutional investor having invested in Shadowfax’s Series A round in 2015, also made a partial exit, underscoring the company's growth and track record of creating value for shareholders and investors. This round encompasses a blend of primary, secondary and venture debt financing, further strengthening Shadowfax's position in the market."

Shadowfax will utilise the raised funds to reinforce its middle-mile network and extend its last-mile delivery services to cover all 20,000 pin codes across India, the release added. "Part of the raised funds will be used to develop state-of-the-art services for Direct-to-Consumer (D2C) brands leveraging cutting-edge technologies and further enhance Shadowfax’s express delivery network. Such expansion and innovation initiatives are pivotal in solidifying Shadowfax’s competitive edge."

Abhishek Bansal, CEO, Shadowfax says: "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."

Shweta Bhatia, Partner and Head of Technology, Consumer & Financial Services Investments India, Eight Roads Ventures adds: "As the market evolves, we are excited for the company’s continued success as the preferred partner of choice for e-commerce and express logistics on the back of its industry-leading tech innovation and operational excellence."

Amit Gupta, Partner and Head of India and Southeast Asia, TPG NewQuest says: "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. We are excited to be partnering with them.”

Shadowfax’s transition to a full-stack parcel business model has led to consistent EBITDA with three consecutive quarters of profitability in the current financial year from April to December 2023, the release added.

Founded in 2015 by a team of IIT-Delhi alumni including Bansal, Vaibhav Khandelwal, Praharsh Chandra and Gaurav Jaithliya, Shadowfax's network covers 2,500+ cities and 15,000+ pin codes delivering two million packages every day.

The company has raised over $280 million including the current round, as per Tracxn, a private markets data provider, Moneycontrol reported.