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.