SUMMARY
- Shadowfax is in the advanced stages of securing a funding round ranging from $45-50 million.
- It is expected to nearly double its valuation to $700 million.
- This will be Shadowfax’s final private round before it begins IPO.
Bengaluru-based hyperlocal logistics startup Shadowfax is in the advanced stages of securing a funding round ranging from Rs 350-400 crore ($45-50 million), which is expected to nearly double its valuation to Rs 5,500-6,000 crore ($700 million), as per sources.
This will be Shadowfax’s final private round before it begins its initial public offering (IPO).
Investors including family offices, mutual funds, and high-net-worth individuals (HNIs) known to be onboarded before a company goes public are expected to participate in this round of Shadowfax, which excels in quick commerce and same-day ecommerce services.
Wealth managers like Nuvama and InCred, who manage investment deals for their private clients have also been in talks with Shadowfax for this funding round, though the company plans to finalize its investor list in the next few weeks.
In February, Shadowfax closed a $100 million round, having both primary and secondary Investments with the round being led by growth investor TPG NewQuest. This investment put Shadowfax at a valuation of $350 million.
The Flipkart-backed firm was aiming to raise $30-35 million for this latest funding, which is being expanded due to high demand for its services, especially given its plans for an IPO. The goal is to finalize the valuation before starting the IPO process, with an expectation that this process will be completed within the current fiscal year.
As a result of this expansion, some of the investors may opt to sell a portion of their shares in a secondary share sale.
Both new and existing investors are expected to be part of the fundraising effort.
Established by the alumni of IIT Delhi, Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya, Shadowfax has evolved to serve ecommerce clients like Meesho, initially offering on-demand logistics services for food delivery platforms.
Shadowfax is now experiencing significant growth in its delivery services, with several brands and platforms adopting its same-day delivery and even faster options, leading to an increase in packages handled daily, currently at 2-2.5 million, and a large pool of 1.6 million monthly active delivery partners.
