Shadowfax Raises $100 Million From TPG NewQuest, Flipkart And Others
Eight Roads Ventures, the company’s first institutional investor, made a partial exit.
Shadowfax has raised $100 million, or about Rs 830 crore, in a funding round led by TPG NewQuest and with participation from existing investor Flipkart.
The amount marks the close of the logistics startup's Series E round—its fifth major funding round since inception.
"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," it said in a statement on Tuesday. "This round encompasses a blend of primary, secondary and venture debt financing, further strengthening Shadowfax's position in the market."
Eight Roads Ventures, the company’s first institutional investor that had invested during the Series A round in 2015, also made a partial exit, Shadowfax said.
Over the next 18 months, Shadowfax will utilise the raised funds to "reinforce its middle-mile network and extend its last-mile delivery services to cover all 20,000 pin codes across India," it said.
It will also develop services for direct-to-consumer brands and enhance the company's express delivery network.
"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," Chief Executive Officer Abhishek Bansal said. "Now, having another marquee investor on the board only adds to our confidence in what we're building."
"We have been impressed with the tech stack they have built," Amit Gupta, partner and head of India and Southeast Asia at TPG NewQuest, said. "This helps with the delivery of superior service metrics and allows them to quickly adapt their services to clients's changing needs at the lowest price."
Shadowfax has now transitioned to a full-stack parcel business model. The company claimed to be operationally profitable for three consecutive quarters in the current financial year.
"Shadowfax is on track to achieve its first full financial year of positive Ebitda in FY24 (after accounting for ESOP costs)," it said.
