Logistics firm Shadowfax has achieved a major milestone by raising ₹34.2 crore (approximately $4 million) in its Series F funding round. This fundraise comes almost 11 months after the company raised $100 million in its previous round. With a valuation of ₹5,981 crore (around $712 million), Shadowfax is getting ready for future growth and an expected IPO.
PC: Startup Story
Funding Round Details
Shadowfax has announced the approval of issuing 5,773 Series F compulsory cumulative preference shares priced at ₹59,320 apiece. These are part of a broader financing exercise by the company. Total financing for the round will add up to $50 million. So far, some investments come from Mirae Asset, where ₹17.4 crore is the investment. Nokia Growth Partners contributed with an amount of ₹16.79 crore.
These funds will be allocated towards strategic initiatives and operational expansion by Shadowfax. This is a critical funding round for the company as it is gearing up for an expected IPO, which is likely to mop up ₹2,500-3,000 crore in the latter half of the ongoing calendar year. Shadowfax has appointed JM Financial, Morgan Stanley, and ICICI Securities as lead bankers for this IPO process.
Company Background
Founded in Bengaluru, Shadowfax is a logistics solutions provider that has developed a strong operational framework with a unique crowdsourcing network of 125,000 monthly active delivery partners and 3.5 million registered users. The company offers industry-leading Turnaround Time (TAT) at competitive pricing, thus becoming a serious player in the logistics sector.
Financial Performance
Shadowfax has demonstrated spectacular financial growth with a 33.2% year-on-year increase in revenue, clocking ₹1,415 crore for the fiscal year ending March 2024. The company has also dramatically reduced its losses by 91.7%, from ₹142.6 crore in FY23 to ₹11.8 crore in FY24. Financial discipline puts Shadowfax in a good position vis-à-vis its competitors.
Competitive Landscape
Shadowfax competes with big guns in this highly competitive logistics market with names like Delhivery, Ecom Express, XpressBees, Shiprocket, and Blue Dart. The Delhi-based Delhivery, which has been listed on the Indian Stock exchange, has reported revenues of ₹8,594 crore for FY24 while Ecom Express reported revenues of ₹2,609 crore and received board approval to raise money worth ₹2,600 crore to prepare for an IPO.
The funding received is a preparation activity before Shadowfax goes public; this funding is likely to contribute to improvement in technology, improvement in operational efficiencies, and business expansion. It’s also evolving because of rising demand for delivery services, such as faster, more reliable logistics.
In summary, the Series F funding of Shadowfax shows growth on all metrics and its strategizing to gear up for its IPO. Its solid valuation and improved financial metrics make the company an impact player in the logistics space. The investments by Mirae Asset and Nokia Growth Partners into the company further amplify this confidence behind Shadowfax’s business model and prospects. With increased competition in the logistics landscape, Shadowfax’s ability to innovate and deliver value shall be key for sustained success.
