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Bengaluru-based logistics startup Shadowfax raises $100M led by TPG NewQuest, existing backers

ISN Team
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Shdawfax Co-founders Abhishek Bansal, Praharsh Chandra, Vaibhav Khandelwal, and Gaurav Jaithliya

Shdawfax Co-founders Abhishek Bansal, Praharsh Chandra, Vaibhav Khandelwal, and Gaurav Jaithliya

Bengaluru-based logistics startup Shadowfax has raised $100 million in a funding round led by TPG NewQuest.

The round also saw participation from existing investors, including Walmart-owned Flipkart, Mirae Asset Venture Investments, International Finance Corporation (IFC), Nokia Growth Partners, Qualcomm, and Trifecta Capital. 

The $100 million funding comes at a time when large-scale funding has become rare due to investors' increasing selectivity.

Expanding reach and enhancing services


With the fresh capital, Shadowfax aims to enhance its express delivery network and strengthen its middle-mile logistics. The startup plans to extend its last-mile delivery services to cover 20,000 pin codes across India.

Founded by Abhishek Bansal, Praharsh Chandra, Vaibhav Khandelwal, and Gaurav Jaithliya, It claims to have a robust distribution network that spans over 2,500 cities and covers more than 15,000 pin codes, delivering 2 million packages daily.

Leveraging quick-commerce growth

The funding comes at a crucial time when the quick-commerce sector is witnessing rapid growth in India. The startup claims to have been profitable for three consecutive quarters in the current financial year, from April to December 2023.

"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," Abhishek Bansal, CEO of Shadowfax said.

He attributes the company's growth to the growing demand for quick-commerce, which relies heavily on third-party logistics for timely deliveries.

Giving partial exit to existing investors

Shadowfax's latest round, which also has a venture debt component, gave early investors an exit. Eight Roads Ventures made a partial exit.

"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 its industry-leading tech innovation and operational excellence,” said Shweta Bhatia, Partner and Head of Technology, Consumer & Financial Services Investments India, Eight Roads Ventures.

With more than $280 million raised to date, including the latest round, Shadowfax is focused on expanding its delivery network and enhancing services for D2C brands, coupled with the launch of its on-demand delivery service app Flash.

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