On Tuesday, logistics company Shadowfax announced the successful closure of its Series E funding round, securing $100 million. TPG NewQuest spearheaded the funding, with participation from existing investors including Mirae Asset Venture Investments, Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital.
This funding round encompassed primary, secondary, and venture debt financing, with Eight Roads Ventures, the company’s initial institutional investor, making a partial exit.
The recent infusion of capital propels Shadowfax closer to unicorn status, as the firm garnered a valuation of approximately $600 million during the first installment of the Series E round, a development exclusively reported by Entrackr in July 2022.
Shadowfax plans to deploy the funds to strengthen its middle-mile network and expand its last-mile delivery services, aiming to cover all 20,000 pin codes across India in the next 18 months, according to the company’s statement.
Additionally, a portion of the funding will be allocated to developing services for Direct-to-Consumer (D2C) brands and enhancing Shadowfax’s express delivery network.
Shadowfax is known for providing services to a vast customer network with industry-leading Turnaround Time (TAT) at competitive prices. The company boasts a distinctive crowdsourcing network comprising 125,000 monthly active delivery partners and 3.5 million registered users.
In December, Shadowfax introduced an on-demand delivery service app called Flash, enabling merchants and customers to avail instant delivery services within the city.
According to startup data intelligence platform TheKredible, Shadowfax reported revenue from operations of Rs 1,415.40 crore in FY23, compared to Rs 990 crore in FY22. The company managed to control its losses, reducing them from Rs 176 crore in the previous fiscal year to Rs 141 crore in FY23.
Shadowfax asserts that it achieved three consecutive quarters of profitability in the current financial year from April to December 2023 and is on track to achieve its first full financial year of positive EBITDA in FY24, factoring in ESOP costs.
