Shadowfax Launches Flash App to Compete with Dunzo in On-Demand Delivery Space

• ByStartupStory     |    December 21, 2023

In a bid to enter the on-demand delivery space and compete with the troubled startup Dunzo, logistics startup Shadowfax has announced the launch of its app Flash. This new service aims to provide last-mile delivery solutions to customers in over 50 cities within a swift 30-minute timeframe. Users can request pickups and drop-offs through the app, which caters to both merchants and end customers within city limits.

The Flash platform introduces the concept of ‘milk run deliveries’, allowing customers to consolidate multiple shipments on a single route, thereby optimizing efficiency and reducing delivery costs. Shadowfax emphasizes Flash as a cost-efficient logistics solution prioritizing speed and reliability. The app integrates GPS technology for full delivery visibility and real-time tracking capabilities.

Praharsh Chandra, Shadowfax’s cofounder and chief business officer, expressed excitement about the launch, stating, “We are thrilled to introduce Flash by Shadowfax. This service aligns with our commitment to innovation and customer satisfaction, providing a comprehensive solution for efficient, on-demand logistics.”

The move puts Shadowfax in direct competition with Dunzo, allowing the company to tap into the growing demand for on-demand delivery and diversify its portfolio. This expansion is expected to scale up the company’s offerings and create alternative revenue streams.

The timing of this development coincides with Dunzo’s financial challenges and halted expansion plans, presenting an opportunity for Shadowfax to enter a space long dominated by Dunzo. Notably, this launch follows the Competition Commission of India (CCI) approving Mirae Group’s proposal to acquire a minority stake in Shadowfax. Reports also indicate that Shadowfax is finalizing a $60 million funding round led by TPG NewQuest.

Established in 2015 by Vaibhav Khandelwal, Abhishek Bansal, Praharsh Chandra, and Gaurav Jaithliya, Shadowfax is a third-party logistics platform serving hyperlocal and delivery businesses. The startup boasts a network of over 125,000 monthly active delivery partners covering 15,000 pincodes and serving 3.5 million registered users.

Backed by prominent investors like Mirae, Flipkart, Qualcomm Ventures, and Eight Roads Ventures, Shadowfax has a clientele including Meesho, Myntra, Blinkit (formerly Grofers), and Flipkart. With over $120 million raised to date, the company reported a net loss of INR 142.63 crore in FY23, down 19% year-on-year, while its total income rose 42% YoY to INR 1,423 crore.

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