Shadowfax Secures $100 Million in Series E Funding Round

• ByStartupStory     |    February 28, 2024

Logistics startup Shadowfax has successfully raised $100 million (Rs 820 crore) in its latest Series E funding round, with TPG NewQuest leading the investment. Existing investors, including Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation (IFC), Nokia Growth Partners, Qualcomm, and Trifecta Capital, have also participated in this significant funding round.

In an official release, the company revealed that Eight Roads Ventures, its first institutional investor from the Series A round in 2015, made a partial exit, highlighting Shadowfax’s remarkable growth and consistent value creation for shareholders and investors. This funding round incorporates a mix of primary, secondary, and venture debt financing, further solidifying Shadowfax’s position in the market.

The raised capital will be utilized by Shadowfax to strengthen its middle-mile network and expand its last-mile delivery services to encompass all 20,000 pin codes across India. A portion of the funds will also be dedicated to developing state-of-the-art services for Direct-to-Consumer (D2C) brands, leveraging cutting-edge technologies to enhance Shadowfax’s express delivery network.

Abhishek Bansal, CEO of Shadowfax, expressed confidence in the company’s ability to capture a greater market share, even in challenging economic conditions. He stated, “Our ability to capture a greater share of the market, even in a tough economic climate, is a testament to the core strength of our business. Now having another marquee investor on the board only adds to our confidence in what we’re building.”

Shweta Bhatia, Partner and Head of Technology, Consumer & Financial Services Investments India, Eight Roads Ventures, emphasized the company’s success as the preferred partner for e-commerce and express logistics. She said, “As the market evolves, we are excited for the company’s continued success as the preferred partner of choice for e-commerce and express logistics on the back of its industry-leading tech innovation and operational excellence.”

Amit Gupta, Partner and Head of India and Southeast Asia at TPG NewQuest, praised Shadowfax’s impact on revolutionizing the e-commerce logistics sector in India. He highlighted the impressive tech stack, enabling superior service metrics and adaptability to clients’ changing needs at the lowest price. Gupta stated, “We are excited to be partnering with them.”

According to the release, Shadowfax’s transition to a full-stack parcel business model has resulted in consistent EBITDA, with three consecutive quarters of profitability in the current financial year from April to December 2023.

Founded in 2015 by a team of IIT-Delhi alumni, including Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya, Shadowfax’s extensive network covers 2,500+ cities and 15,000+ pin codes, facilitating the delivery of two million packages every day. Including the current Series E round, the company has raised over $280 million, according to Tracxn, a private markets data provider.

Follow Startup Story