Shadowfax, one of the largest logistics service providers to hyperlocal and on-demand delivery businesses in India, has posted 35% annual growth and raised $100 million in a new funding round.
TPG NewQuest led Shadowfax's Series E funding round, which also includes secondary transactions, the startup announced Tuesday. TechCrunch reported last year that TPG NewQuest was considering investing in Shadowfax.
Existing backers including e-commerce giant Flipkart, Mirae Asset Venture Investments, IFC, Nokia Growth Partners, Qualcomm, Eight Roads Ventures and Trifecta Capital also participated in the new funding, the company said. Ta.
Shadowfax addresses the country's highly fragmented last-mile delivery infrastructure. India's consumer delivery networks are often inefficient, plagued by complex urban environments and inconsistent quality of service. This leads to delays, increased costs, and frustration, especially for small and medium-sized businesses without advanced delivery capabilities.
The Bangalore-headquartered startup aims to streamline logistics operations by integrating disparate elements of India's last-mile ecosystem.
Shadowfax's network currently reaches over 2,500 cities and over 15,000 zip codes. Shadowfax says it delivers more than 2 million packages every day and has more than 3.5 million registered users.
“As a third-party logistics organization, we have gained significant market share over the past 24 months, and we have done so while remaining profitable,” said Shadowfax co-founder and CEO. Director Abhishek Bansal told TechCrunch in an interview.
Shadowfax operates a logistics and delivery network of over 125,000 active couriers every month and partners with numerous companies including Flipkart, Meesho, and many direct-to-consumer brands. Bansal said the startup hasn't lost a single customer in five years.
Bansal attributed the growth to the proliferation of quick commerce in India, which he said contributed to the company's 35% growth rate.
“We also have a hyper-local division and have significant exposure to quick commerce companies. We work with all quick commerce companies and any brand that needs same-day or next-day delivery. ” he added.
Founded in 2015, Shadowfax has raised more than $220 million in primary and secondary transactions.
Amit Gupta, partner and head of India and Southeast Asia at TPG NewQuest, said in a statement that Shadowfax is “revolutionizing” India's e-commerce logistics sector.
Shadowfax is Mirae Asset's first investment in India, and the venture has participated in each subsequent round.
“We believe that logistics is the foundation of e-commerce and hyperlocal commerce, enabling the growth of these markets.” But it continued to deliver results,'' Ashish Dave, CEO of Mirae Asset Venture Investments (India), said in a statement.
“Throughout the past five years, they have invested in the growth of their network and organization while providing sound financial metrics.”