Logistics firm Shadowfax raised $100 M Series E funding from TPG NewQuest
The $100 million Series E funding round for the logistics company Shadowfax was closed as of Tuesday. The financing round was headed by TPG NewQuest, with participation from pre-existing investors Mirae Asset Venture Investments, Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital.
This round of funding included venture, secondary, and primary debt. The company’s first institutional investor, Eight Roads Ventures, also withdrew partially.
Given that the company was valued at approximately $600 million during the first tranche of the Series E round, the most recent funding moved Shadowfax closer to unicorn status.
In a statement, Shadowfax stated that it will use the money to fortify its middle-mile network and expand its last-mile delivery services to include all 20,000 pin codes in India within the next 18 months.
According to the statement, part of the funds will also be utilized to expand Shadowfax’s express delivery network and create services for D2C brands.
With an industry-leading Turnaround Time (TAT) and affordable rates, Shadowfax offers its services to a wide range of clients. It has 3.5 million registered users and a unique crowdsourcing network with 125,000 monthly active delivery partners.
In December, Shadowfax introduced the Flash on-demand delivery app, allowing customers and businesses to get same-day delivery anywhere in the city.
According to the media, Shadowfax reported operating revenue of Rs 1,415.40 crore in FY23 as opposed to Rs 990 crore in FY22. From Rs 176 crore in the previous fiscal year to Rs 141 crore in FY23, the company managed to control its losses.
According to Shadowfax, it was profitable for three out of the four quarters of the current fiscal year, which ran from April to December 2023. It also believes that it will reach its first full fiscal year of positive EBITDA in FY24, provided that ESOP costs are taken into consideration.
