Shadowfax raises $100 million from TPG NewQuest, Flipkart and others | Startups – Business Standard
Logistics company Shadowfax said it has closed its Series E funding round and secured $100 million in investments. TPG NewQuest led the round, with participation from existing investors including Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm and Trifecta Capital.
Eight Roads Ventures, the company’s first institutional investor that invested in Shadowfax’s Series A round in 2015, also made a partial exit. This round includes a mix of primary, secondary and venture capital funding, further strengthening Shadowfax’s position in the market.
Over the next 18 months, Shadowfax will use the money raised to strengthen its mid-range network. The money would also help the country expand its last-mile delivery services to all 20,000 pin codes across India. Part of the money raised will be used to develop state-of-the-art services for Direct-to-Consumer (D2C) brands, using cutting-edge technologies. This would further strengthen Shadowfax’s express delivery network.
“Our ability to capture a larger share of the market even in a tough economic environment is a testament to the core strength of our company,” said Abhishek Bansal, CEO of Shadowfax.
Amit Gupta, partner and head of India and Southeast Asia, TPG NewQuest, said: “We are impressed with the tech stack they have built.”
“As the market evolves, we are excited about the company’s continued success as the e-commerce partner of choice,” said Shweta Bhatia, Partner & Head of Technology, Consumer & Financial Services Investments India, Eight Roads Ventures.
Ashish Dave, CEO of Mirae Asset Venture Investments (India), said the Shadowfax team has built a highly scalable platform and has continued to perform even during challenging periods.
Shadowfax’s transition to a full-stack package business model has delivered consistent Ebitda profits, with three consecutive quarters of profitability in the current fiscal year, from April to December 2023. The company said it is on track to achieve its first full financial year of achieve positive results. Ebitda in FY24 (after accounting for ESOP costs).
First print: February 28, 2024 | 12:32 pm IST