to Expand Company’s Geographic Presence and build out the most reliable on-demand delivery network
Delhi-based hyperlocal technology start-up ShadowFax has today confirmed the close of a $8.5M Series A round by Fidelity’s proprietary investment arm, Eight Roads Ventures. ShadowFax is a fast growing on demand delivery service focused on intra-city deliveries, serving the local delivery requirements of neighbourhood merchants.
The funding will enable ShadowFax to rapidly scale-up and expand across several cities. Started by IIT Delhi graduates, ShadowFax, which raised seed funding earlier this year from leading angel investors including Kunal Bahl and Rohit Bansal of Snapdeal, has seen multi-fold month-over-month transaction growth.
ShadowFax uses technology as a key enabler to drive operational efficiencies and create client stickiness with merchants. With an initial focus on the restaurant industry, the Company aims to diversify into other verticals such as grocery, bakery, pharmaceuticals and e-commerce.ShadowFax has experienced rapid growth in a short time span and has spread across 3 cities within the first 4 months. With the key focus on service quality, Shadowfax claims to deliver 95% of the orders in less than 15 minutes from pick up.
“India has over 10 million local merchants. With increasing number of consumer facing hyper-local platforms, most of them seek to serve their consumers directly in their homes to expand their business. Due to lack of third party logistics options, the merchants themselves cater to the logistics by employing in-house personnel, which is inefficient and not scalable. The market need has led to the growth of specialist express delivery services, that are able to aggregate and meet demand the delivery requirements. We at Shadowfax are building the fastest and the most efficient delivery network to meet the market requirement across categories, using our proprietary technology and operational excellence”, says Abhishek Bansal, the CEO and Co-Founder of ShadowFax.
Kabir Narang, Managing Director at Eight Roads Ventures comments, “We have been actively looking at opportunities in logistics tech and are excited to partner with ShadowFax and its exceptional management team. ShadowFax provides a unique and compelling value proposition to local merchants and helps them reach consumers by providing reliable last mile delivery support. We believe hyper-local commerce is at a tipping point and logistics players serving this market are poised for sustained growth over the next several years. ShadowFax is an early mover and is well positioned to dominate the market.”
Following the closing of the financing, Kabir Narang has joined ShadowFax’s Board of Directors.