Shadowfax Secures $100 Million in Series E Funding Round Led by TPG NewQuest

Logistics company Shadowfax announced on Tuesday the successful closure of its Series E funding round, amassing $100 million. Leading the investment was TPG NewQuest, with participation from existing investors such as Mirae Asset Venture Investments, Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital.

This latest funding round comprised a combination of primary, secondary, and venture debt financing. Notably, Eight Roads Ventures, the company’s initial institutional investor, also made a partial exit.

The injection of capital propels Shadowfax closer to achieving unicorn status, with the company being valued at approximately $600 million during the initial tranche of the Series E round.

According to a statement by the company, the funds raised will be deployed to strengthen its middle-mile network and expand its last-mile delivery services to encompass all 20,000 pin codes across India within the next 18 months.

Additionally, a portion of the funding will be allocated towards developing services tailored for Direct-to-Consumer (D2C) brands and further enhancing Shadowfax’s express delivery network.

Shadowfax is renowned for providing services to a wide array of customers, boasting industry-leading Turnaround Time (TAT) at competitive prices. Its crowdsourcing network comprises 125,000 monthly active delivery partners and 3.5 million registered users.

In December, Shadowfax introduced the Flash app, an on-demand delivery service that enables merchants and customers to access instant delivery services within the city.

Shadowfax reported revenue from operations of Rs 1,415.40 crore in FY23, compared to Rs 990 crore in FY22. Moreover, the company reduced its losses to Rs 141 crore in FY23 from Rs 176 crore in the previous fiscal year.

Shadowfax claims it has attained profitability in the consecutive quarters of the ongoing fiscal year, from April to December 2023. Furthermore, it aims to achieve its first financial year of positive EBITDA in FY24, factoring in ESOP costs.