Shadowfax Secures $100 Million Funding Round to Accelerate Instant Delivery Services

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Logistics Startup Tackles India’s Fragmented Delivery Infrastructure

In a significant development for the Indian logistics sector, Shadowfax, one of the largest logistics service providers to hyper-local and on-demand delivery businesses in the country, has raised $100 million in a new funding round. The Bengaluru-headquartered startup has achieved a remarkable 35% yearly growth rate, solidifying its position as a key player in the industry.

TPG NewQuest Leads Series E Financing Round

TPG NewQuest led Shadowfax’s Series E financing round, which includes some secondary transactions, according to the startup. 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.

Shadowfax’s Mission: Unifying Disparate Elements in India’s Last-Mile Ecosystem

Shadowfax is tackling the country’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, leading to delays, elevated costs, and frustration, especially for small businesses that lack sophisticated delivery capabilities.

Key Statistics: Shadowfax’s Network and Growth

Shadowfax’s network reaches over 2,500 cities and more than 15,000 zip codes.
The company makes over 2 million packages deliveries each day.
Shadowfax has amassed over 3.5 million registered users.

According to Abhishek Bansal, co-founder and chief executive of Shadowfax, the startup has gained market share significantly over the last 24 months while remaining profitable.

Attributing Growth to Quick-Commerce Adoption

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. Shadowfax operates a logistics and delivery network of over 125,000 monthly active delivery personnel and works with numerous firms, including Flipkart, Meesho, and many direct-to-consumer brands.

Founding and Funding History

Founded in 2015, Shadowfax has raised more than $220 million in primary and secondary transactions. 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.

Existing Backers Show Confidence in Shadowfax’s Growth

Shadowfax is Mirae Asset’s first investment in India and 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 e-commerce and hyperlocal commerce and that it enables the growth of these markets.’

Conclusion

Shadowfax’s success is a testament to its innovative approach to tackling India’s fragmented delivery infrastructure. With over 3.5 million registered users and a network spanning 2,500 cities and more than 15,000 zip codes, the startup has demonstrated significant growth potential. The new funding round will enable Shadowfax to further expand its services and solidify its position as a leader in the Indian logistics sector.

Future Outlook

As quick-commerce continues to gain traction in India, Shadowfax is well-positioned to capitalize on this trend. With its proven track record of growth and innovation, the startup is likely to remain a key player in the Indian logistics industry for years to come.

Recommendations for Investors and Stakeholders

Investors and stakeholders interested in the Indian logistics sector should closely monitor Shadowfax’s future developments and consider investing in the company or partnering with it to leverage its expertise and network.

Conclusion

Shadowfax’s $100 million funding round is a significant milestone for the startup and the Indian logistics sector as a whole. With its innovative approach, proven track record of growth, and strong existing backers, Shadowfax is poised to continue its success in the years ahead.