India: Flipkart leads $60m funding in logistics startup Shadowfax

Flipkart. Photo: Hemant Mishra/Mint

Bangalore-headquartered online-to-offline (O2O) logistics startup Shadowfax Technologies Private Limited has raised $60 million in a Series D funding round led by Walmart-owned e-commerce company Flipkart.

Eight Roads Ventures, the venture capital arm of Fidelity, Nokia Growth Partners, Qualcomm Ventures, Mirae Asset Naver Fund, and World Bank-backed International Finance Corporation (IFC) also participated in the financing.

According to a press statement, Flipkart has picked up a minority strategic stake in Shadowfax. While the amount it invested was not disclosed, Flipkart has reportedly pumped in $50 million into Shadowfax as it looks to beef up its last-mile delivery capabilities.

The latest round brings the startup’s total funding to $100 million till date.

“At Flipkart, we are focussed on redefining customer experience, and hyperlocal is a key element to enable this transformation. We have seen strong synergies with Shadowfax through our existing engagement with them, and their investments in tech-enabled innovations will help us significantly reduce delivery time and provide superior customer experiences across product categories,” Kalyan Krishnamurthy, CEO, Flipkart, said.

Shadowfax will use the funds to enhance the tech capabilities of its platform, hire more talent, increase its shipment capacity to 100 million orders a month. Besides, the company also plans to expand its presence to 1,000 Indian cities.

Founded by IIT Delhi alumni Bansal and Vaibhav Khandelwal in 2015, Shadowfax enables customers to make deliveries by connecting them delivery partners. Flipkart in a statement said that Shadowfax currently enables delivery of 10 million monthly shipments across diverse segments, from hot food and grocery to fashion, electronics, and other ecommerce items.

Last August, Shadowfax raised $22 million in a Series C funding round led by NGP Capital. Qualcomm Ventures, the investment arm of Qualcomm, Mirae Asset and existing investor Eight Roads Ventures had also joined the round.

Eight Roads had previously invested $10 million in the company in 2016, a follow-on investment after an $8.5-million financing in 2015.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.