Shadowfax has closed a $100 million Series E round led by TPG NewQuest, valuing the Bengaluru-based third-party logistics firm at roughly $500 million, according to inc42.com. The round, which closed this week, brings the company’s total funding to $240 million since inception.
The capital injection was led by TPG NewQuest with participation from existing backers including Mirae Asset, International Finance Corporation and Qualcomm Ventures, inc42.com reported. Shadowfax will deploy the fresh funds to deepen its network in 2,000-plus Indian cities, expand dark-store capacity for 10-minute grocery deliveries and add electric vehicles to its last-mile fleet. Founder Abhishek Bansal told inc42.com that the company turned profitable at the operating level in FY24 and will use the proceeds to double daily shipment volumes to 1.5 million within 18 months.
The round arrives as India’s hyperlocal delivery market is consolidating after years of cash burn. Rivals such as Delhivery and Xpressbees have raised similar late-stage cheques—Delhivery secured $277 million pre-IPO in 2021 while Xpressbees closed $300 million at a $1.2 billion valuation the same year—yet Shadowfax claims the largest network of micro-fulfilment centres among independent 3PL players, per inc42.com analysis. With quick-commerce platforms like Blinkit and Zepto increasingly outsourcing last-mile logistics, investors are betting that asset-light, tech-enabled networks can capture a growing share of the $20 billion urban delivery market.
Shadowfax plans to file draft red-herring prospectus papers for an initial public offering in the second half of 2025, subject to market conditions, according to inc42.com. The company will first focus on scaling its dark-store count from 450 to 1,000 by December 2024 and pilot drone deliveries in Delhi-NCR by early next year, executives told the publication.