Shadowfax Eyes $60 Million Funding Round Led By TPG NewQuest

Indian logistics startup Shadowfax is in the final stages of securing a funding round estimated at $60 million, led by TPG's NewQuest. 

The Bengaluru, India-based startup, backed by investors like Flipkart Private Ltd., is anticipated to conclude the deal by the end of this month. The funding will include some secondary transactions and is the result of deliberations spanning over a year, following unsuccessful negotiations with A91 Partners because of a disagreement on valuation.

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What Is Shadowfax?

Shadowfax is a prominent player in India's logistics sector, providing services to hyper-local, on-demand delivery businesses. In recent months, it has diversified its clientele, moving away from over-dependence on its largest customer, Meesho. The shift toward a more balanced client portfolio has been profitable for the company, assuaging investor concerns and paving the way for sustainable growth.

The startup services a wide range of notable clients, including Myntra, Blinkit Commerce Ltd., Decathlon, Flipkart, BigBasket and Practo. It processes 1.5 million orders daily using a logistics network spanning 9,500 ZIP codes across India and engaging over 3 million delivery personnel.

TPG's NewQuest, a global private equity firm recognized for successful investments across various sectors, is anticipated to be the lead investor in this funding round. Its participation underscores Shadowfax's potential and the appeal of the growing Indian logistics market. To date, Shadowfax has raised around $121 million in funding.

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How Will Shadowfax Use The money?

The $60 million investment from their Series D will bolster Shadowfax's capabilities, allowing for network enhancement, technological and infrastructural development and an expanded market reach across India. This would not only improve services for existing customers but also attract new ones.

Shadowfax's recent profitability, customer diversification and imminent funding position it well for continued success in the evolving Indian logistics sector, boosted by e-commerce growth and increased demand for efficient delivery services. The firm's role in this changing landscape highlights its significance in offering reliable delivery solutions through technology-driven approaches, benefiting both businesses and consumers.

The funding will strengthen Shadowfax's standing in the market and broaden its customer base, underpinning its sustained growth in the dynamic Indian logistics industry.

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