Shadowfax, a leading logistics service provider for hyper-local and on-demand delivery businesses in India, has successfully raised $100 million in a recent funding round. This achievement comes as the company experiences a remarkable 35% annual growth rate.
Key Takeaway
Shadowfax secures
00 million in funding to bolster its instant delivery services, addressing the challenges of India’s last-mile delivery infrastructure and experiencing significant growth in the process.
Series E Financing Round Led by TPG NewQuest
The Series E financing round was spearheaded by TPG NewQuest, with participation from existing investors such as Flipkart, Mirae Asset Venture Investments, IFC, Nokia Growth Partners, Qualcomm, Eight Roads Ventures, and Trifecta Capital. This round also involved some secondary transactions, further solidifying Shadowfax’s position in the market.
Addressing Last-Mile Delivery Challenges
Shadowfax is dedicated to addressing the challenges present in India’s fragmented last-mile delivery infrastructure. The country’s consumer delivery networks often grapple with inefficiencies, complex urban environments, and inconsistent service quality, leading to delays and increased costs. Small businesses, in particular, face significant hurdles due to the lack of sophisticated delivery capabilities.
By unifying disparate elements in India’s last-mile ecosystem, Shadowfax aims to streamline logistics operations and enhance overall delivery efficiency.
Expansive Reach and Impressive Operations
Currently, Shadowfax’s extensive network spans over 2,500 cities and encompasses more than 15,000 zip codes. The company boasts a daily delivery volume exceeding 2 million packages and has garnered a user base of over 3.5 million registered users.
Empowering Quick-Commerce in India
Abhishek Bansal, co-founder and chief executive of Shadowfax, emphasized the company’s substantial market share growth over the past two years, all while maintaining profitability. Bansal attributed this success to the increasing adoption of quick-commerce in India, which has propelled Shadowfax’s growth at a remarkable 35% rate.
With a network of over 125,000 monthly active delivery personnel, Shadowfax collaborates with various entities, including prominent names like Flipkart, Meesho, and direct-to-consumer brands. Notably, the company has retained every customer it has acquired over the past five years.
Positive Industry Endorsements
Amit Gupta, Partner and Head of India and Southeast Asia at TPG NewQuest, expressed confidence in Shadowfax’s ability to revolutionize the e-commerce logistics sector in India. Additionally, Mirae Asset Venture Investments, participating in each subsequent funding round, highlighted the company’s scalability and resilience, particularly during challenging periods.
Shadowfax’s significant achievements and continued investments in network expansion have positioned the company as a key player in driving the growth of e-commerce and hyperlocal commerce in India.
