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

Shadowfax co-founders: (L-R): Praharsh Chandra, Abhishek Bansal, Gaurav Jaithliya and Vaibhav Khandelwal

Shadowfax, a logistics startup, has raised $100 million in a round led by TPG NewQuest. Existing investors like Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation (IFC), Nokia Growth Partners, Qualcomm, and Trifecta Capital also participated in the round, the company said in a press release on February 27.

The large ticket fundraise comes after a gap of several months as investors have become more selective with the kind of companies they back. In response, startups are also choosing to raise smaller amounts to protect their valuations – all of which resulted in $100 million deals drying up.

The funding also comes at a time when quick-commerce as a sector is becoming more popular among Indian consumers. Quick-commerce companies typically tie up with third party logistics players like Shadowfax to deliver products during peak hours, or when their in-house fleet is unavailable. In line with the growing demand, Shadowfax plans to enhance its express delivery network with the fresh capital.

It will also use the funds to strengthen its middle-mile network and extend its last-mile delivery services to cover 20,000 pin codes across the country.

The e-commerce service provider and hyperlocal company, currently boasts of a distribution network that stretches across 2,500+ cities and covers over 15,000 pin codes. It delivers 2 million packages daily.

"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," Abhishek Bansal, CEO of Shadowfax said.

Deal details

Shadowfax's latest round has a venture debt component, too. The Series E round, where the startup raised primary capital, also had a secondary share sale which gave early investors an exit. Eight Roads Ventures, Shadowfax’s first institutional investor from 2015, made a partial exit, the company said without providing more details.

"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,” said Shweta Bhatia, Partner and Head of Technology, Consumer & Financial Services Investments India, Eight Roads Ventures.

Shadowfax said it has been profitable for three consecutive quarters in the current financial year from April to December 2023. The company has raised over $280 million including the current round, as per Tracxn, a private markets data provider.