APN News

Shadowfax Raises $100 Million Series E Funding Led by TPG New Quest

 Bangalore: Shadowfax, a trailblazer in the logistics and delivery sector in India, today announced the closing of its Series E funding round, securing US$100 million in investments. 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. Eight Roads Ventures, the company’s first institutional investor having invested in Shadowfax’s Series A round in 2015, also made a partial exit, underscoring the company’s growth and track record of creating value for shareholders and investors. This round encompasses a blend of primary, secondary and venture debt financing, further strengthening Shadowfax’s position in the market.

Over the next 18 months, Shadowfax will utilize the raised funds to reinforce its middle-mile network and extend its last-mile delivery services to cover all 20,000 pincodes across India. Part of the raised funds will be used to develop state-of-the-art services for Direct-to-Consumer (D2C) brands leveraging cutting-edge technologies and further enhance Shadowfax’s express delivery network. Such expansion and innovation initiatives are pivotal in solidifying Shadowfax’s competitive edge.

Abhishek Bansal, CEO of Shadowfax, said: “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.”

Amit Gupta, Partner and Head of India and Southeast Asia, TPG NewQuest, said: “Shadowfax is revolutionizing the e-commerce logistics sector in India. We have been impressed with the tech stack they have built. This helps with the delivery of superior service metrics and allows them to quickly adapt their services to client’s changing needs at the lowest price. We are excited to be partnering with them.”

Commenting on the longstanding partnership with Shadowfax, Shweta Bhatia, Partner & Head of Technology, Consumer & Financial Services Investments India, Eight Roads Ventures, said: “Our partnership with Abhishek, Vaibhav, Praharsh and Gaurav spans nearly a decade and we at Eight Roads Ventures have been fortunate to witness Shadowfax’s scaleup journey right from the early days when 3PL for new-age commerce was beginning to take root. 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 it’s industry-leading tech innovation and operational excellence.”

Ashish Dave, CEO of Mirae Asset Venture Investments (India), said: “Shadowfax is our first investment in India and we have participated in each subsequent round which is testament to the strong performance that the company has delivered over successive quarters for the last 5 years. We believe that logistics is fundamental to ecommerce and hyperlocal commerce and that it enables the growth of these markets. Abhishek and Vaibhav together with their team have built a highly scalable platform and have continued to deliver even during challenging periods. Throughout the last 5 years, they have invested in growing the network and the organization while also delivering on the right financial metrics. We are pleased to be a long-term partner of the company and to back the vision of the founders and management.”

Shadowfax’s transition to a full-stack parcel business model has led to consistent EBITDA profits, with three consecutive quarters of profitability in the current financial year from April to December 2023. As Shadowfax celebrates these milestones, it remains committed to its vision for the future. It is on track to achieve its first full financial year of positive EBITDA in FY24 (after accounting for ESOP costs).

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