Logistics startup Shadowfax has raised $100 million in Series E funding round led by TPG NewQuest. The funding round, which was a mix of primary, secondary and venture debt financing, also witnessed participation from existing investors, including Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital.
"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,” said Abhishek Bansal, CEO of Shadowfax. In fact, Eight Roads Ventures, the startup’s first institutional investor having invested in its Series A round in 2015, also made a partial exit.
“We at Eight Roads Ventures have been fortunate to witness Shadowfax’s scaleup journey right from the early days when 3PL (third-party logistics) for new-age commerce was beginning to take root,” added Shweta Bhatia, Partner and Head of Technology, Consumer and Financial Services Investments India, Eight Roads Ventures.
Over the next 18 months, Shadowfax said that it 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 firm will also use the fresh capital to develop services for direct-to-consumer brands and enhance the company's express delivery network.
"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,” said Amit Gupta, Partner and Head of India and Southeast Asia, TPG NewQuest.
Founded in 2015, Shadowfax has raised more than $220 million in primary and secondary transactions. The e-commerce service provider and hyperlocal company, currently has a distribution network that stretches across 2,500+ cities and covers over 15,000 pin codes. It delivers 2 million packages daily.
Shadowfax said it has been profitable for three consecutive quarters in the current financial year from April to December 2023. "Shadowfax is on track to achieve its first full financial year of positive EBITDA in FY24 (after accounting for ESOP (employee stock ownership plan) costs)," the company added in a statement.
