Indian logistics startup Shadowfax is finalizing a funding round of about $60 million, led by TPG’s NewQuest. The Bengaluru-headquartered startup, which counts Flipkart among its backers, has been working on this funding round for over a year. The deal could close as soon as this month.
Shadowfax is one of the largest logistics services providers for hyper-local, on-demand delivery businesses in India. The company’s logistics network reaches over 9,500 zip codes across the country, working with over 3 million delivery personnel and processing 1.5 million orders a day.
Previous Funding Talks and Valuation Mismatch
Earlier, Shadowfax engaged with A91 Partners for the funding, but the talks did not materialize due to a valuation mismatch. The current round with NewQuest also includes some secondary transactions.
Shadowfax’s Customers and Profitability
Shadowfax’s customer base includes prominent names like Myntra, Zomato-owned Blinkit, Decathlon, Flipkart, BigBasket, and Practo. The startup has significantly reduced its reliance on its largest customer, Meesho, in recent months and has been profitable for at least the past three months. Its over-reliance on Meesho had previously been a source of concern among many of its investors.
Shadowfax’s impending funding round highlights the growing importance of logistics services in the rapidly expanding e-commerce and hyper-local delivery markets in India. With the new funding, Shadowfax is well-positioned to continue its growth and innovation in the logistics space, further solidifying its position as a leading provider in the industry.
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