Shadowfax raises $100 million Series E round led by TPG New Quest

"Mumbai: Shadowfax, a modern logistics services provider, announced on Tuesday that it has raised $100 million for its Series E round, which is being led by TPG NewQuest, through a combination of primary and secondary funding. Those with knowledge of the situation claimed the deal values the nine-year-old company at $500-550 million, though specifics of the valuation were not made public.According to a press statement from Shadowfax, the round also included participation from current investors Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital. The news of NewQuest's interest in the business was initially reported by Mint. To date, the company has raised close to $120 million from investors, including Flipkart, Qualcomm Ventures, Eight Roads Ventures, and US investment firm NGP Capital. Eight Roads Ventures, an early investor in the business that has supported it since its Series A in 2015, made a partial exit through this round, according to ShadowFax. In an interview with Mint, cofounder and CEO of Shadowfax Abhishek Bansal stated that the company has been growing profitably over the last four quarters, with an annualized revenue run rate of ₹2,400 crore for FY24. By March 31, 2024, it hopes to have closed its first year with a positive Ebitda. Bansal stated, ""We will be actively looking for more inorganic opportunities, given that we are already profitable."" The company also intends to list on Indian bourses over the next 24 months. Shadowfax intends to use the additional funding over the course of the next 18 months to expand last-mile delivery over all 20,000 Indian pin codes and increase its middle-mile network. 

A portion of the money generated will be put toward expanding Shadowfax's express delivery network and creating services for direct-to-consumer (D2C) brands. Due to the rapid growth of trade in the nation, logistics companies now need to operate quickly. We intend to enhance our technology capabilities and develop middle-mile delivery in order to establish ourselves as a fully-fledged courier within the 3PL space,"" Bansal said. The company, which was founded in 2015 by Bansal, Vaibhav Khandelwal, Gaurav Jaithliya, and Praharsh Chandra, provides services to online-first brands that range from pharmacy and food delivery services to larger e-commerce logistics. 30-minute deliveries are available for speedy commerce. ""Shadowfax is transforming India's e-commerce logistics industry. Their developed technology stack has impressed us. According to Amit Gupta, partner and head of TPG NewQuest's India and Southeast Asia, ""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."" "