Shadowfax has secured a $100 million funding round to support its efforts to expand rapid delivery services

Shadowfax, a prominent logistics service provider for hyper-local and on-demand delivery businesses in India, recently secured $100 million in a new funding round amid a 35% annual growth rate.

According to a Tuesday startup announcement, TPG NewQuest served as the lead investor in Shadowfax’s Series E financing round, which included secondary transactions. Last year, it was reported that TPG NewQuest was considering an investment in Shadowfax.

Current investors such as Flipkart, Mirae Asset Venture Investments, IFC, Nokia Growth Partners, Qualcomm, Eight Roads Ventures, and Trifecta Capital were also involved in the latest round of funding, according to the startup.

Shadowfax is addressing the fragmented last-mile delivery infrastructure in the country. Consumer delivery networks in India face challenges due to inefficiencies, navigating complex urban areas, and inconsistent service quality. As a result, small businesses without advanced delivery capabilities experience delays, increased costs, and frustration.

The startup, based in Bengaluru, aims to optimize logistics operations by integrating various components in India’s last-mile ecosystem.

Shadowfax’s network currently spans across 2,500 cities and over 15,000 zip codes. Shadowfax reports conducting more than 2 million package deliveries daily and has accumulated a user base exceeding 3.5 million.

Our company, a third-party logistics provider, has significantly increased its market share in the past 24 months. Abhishek Bansal, co-founder and chief executive of Shadowfax, stated in an interview that they have managed to remain profitable.

Shadowfax runs a logistics and delivery network with more than 125,000 monthly active delivery personnel, collaborating with various companies such as Flipkart, Meesho, and several direct-to-consumer brands. The startup has maintained its customer base for five years, according to Bansal.

Bansal credited the expansion to the increased use of quick-commerce in India, leading to a 35% growth rate for the startup.

Our hyper-local division also has significant connections with quick-commerce companies. We collaborate with quick-commerce companies and brands requiring same-day or next-day delivery.

Established in 2015, Shadowfax has secured over $220 million through primary and secondary transactions.

Amit Gupta, Partner and Head of India and Southeast Asia at TPG NewQuest, stated that Shadowfax is transforming the e-commerce logistics industry in India.

Mirae Asset’s initial investment in India was Shadowfax, and the firm has continued to participate in each funding round since then.

Logistics plays a crucial role in the development of e-commerce and hyperlocal commerce markets. Abhishek, Vaibhav, and their team successfully developed a scalable platform and maintained productivity during difficult times,” stated Ashish Dave, CEO of Mirae Asset Venture Investments (India).

Over the past five years, significant investments have been made to expand the network and organization, all while meeting key financial targets.