Logistics Startup Shadowfax Nears $60M Funding Round Led by TPG’s NewQuest

• ByStartupStory     |    August 2, 2023

logistics startup Shadowfax is on the verge of finalizing a funding round worth approximately $60 million, more than a year after it began the funding deliberations, according to two sources familiar with the matter. The funding round is expected to be led by TPG’s NewQuest and will also include some secondary transactions.

Shadowfax, headquartered in Bengaluru and backed by Flipkart, had previously engaged with A91 Partners for funding, but the talks did not materialize over valuation mismatch. A deal with NewQuest could be concluded as soon as this month, the sources said. Shadowfax didn’t respond to a request for comment Tuesday, as per TechCrunch.

In recent months, Shadowfax has significantly reduced its reliance on its largest customer, Meesho, and has been profitable for at least the past three months, the sources said. TechCrunch also mentioned that its over-reliance on Meesho was a source of concern among many of its investors.

Shadowfax serves as one of the largest logistics services providers for hyper-local, on-demand delivery businesses in India, with clientele including Myntra, Blinkit (owned by Zomato), Decathlon, Flipkart, BigBasket, and Practo. According to TechCrunch, the startup’s logistics network reaches over 9,500 zip codes across India and it works with over 3 million delivery personnel, processing 1.5 million orders a day, according to its website.

TPG NewQuest didn’t immediately respond to a request for comment by TechCrunch. The startup has raised about $121 million over the years.

Follow Startup Story