Introduction:
More than a year after it started considering fundraising, Indian logistics firm Flipkart-backed Shadowfax is now completing a funding round of approximately $60 million, according to two persons familiar with the situation.
The sources, who asked to remain anonymous since the discussions are confidential, claimed that TPG’s NewQuest is positioned to lead the round, including some secondary transactions. The sources stated that earlier talks for funding between the Bengaluru-based business and A91 Partners fell through due to a discrepancy in valuation. Flipkart is one of the startup’s supporters. The A91 Partners negotiations were previously covered by the Indian daily Economic Times.
According to the sources, a contract with NewQuest might be finalized this month. On Tuesday, a request for comment from Shadowfax went unanswered.
Flipkart-backed Shadowfax funding led by TPG NewQuest:
Flipkart-backed Shadowfax funding led by TPG NewQuest (Image Source: techcrunch.com)
Sources claim that the company, one of the largest logistical service suppliers to hyper-local, on-demand delivery enterprises, has significantly reduced its reliance on Meesho, its crucial client, and has been profitable for at least the past three months. According to those aware of the circumstances, many of its investors were worried about it because of its overly reliance on Meesho.
Shadowfax has Myntra, Blinkit, Zomato, Decathlon, Flipkart, BigBasket, and Practo among its clients. The startup’s website claims its logistics network serves 1.5 million orders daily and covers over 9,500 Indian zip codes. It also claims to employ more than 3 million delivery personnel.
A request for a response from TPG NewQuest should have been promptly complied with. Over the years, Shadowfax has raised around $121 million.
