Gurgaon-based logistics and delivery startup ShadowFax has closed a $10 million Series B financing round led by Chennai-based Eight Roads Ventures, it was reported Sunday. Eight Roads also led the company $8.5 million Series A last year.
They raised $300,000 in seed funding from Snapdeal’s Kunal Bahl and Rohit Bansal, Zishaan Hayath of Powai Lake Ventures, and Prashant Malik of Limeroad. They claim to make 30,000 deliveries a day in 10 Indian cities, delivering small parcels for clients as far-flung as Burger King, Big Basket, Fortis, and Amazon.
“The company has built a differentiated technology platform and diversified from being a food-only delivery player to now delivering for grocery, pharmacy and e-commerce clients,” Kabir Narang of Eight Roads was quoted by VC Circle as saying.
ShadowFax has grown in India despite heavy competition from other delivery startups, though they might have somewhat of an advantage with an emphasis on B2B shipping and working in a few industries (not just groceries or restaurants). After having started focused only on food, they pivoted (or expanded) to cover pharmacies, local shops, and eCommerce companies.
India’s delivery scene has seen crunching and consolidation following a severe drop in funding across the Indian startup ecosystem and well-publicized layoffs by companies like Zomato and TinyOwl. Others like Spoonjoy, Eatlo, and Dazos are mere footnotes in the history of a boom-and-seemingly-bust industry.
Delivery startups TinyOwl and RoadRunnr merged this past year and emerged as Runnr, raising $7 million from Nexus Venture Partners and Blume Venture Partners back in August. Perhaps signaling lack of confidence in the industry, prominent previous investor in both startups Sequoia Capital did not rejoin to fund the company. Grab out of Mumbai, Swiggy, and Foodpanda are still players in the local market.
ShadowFax was founded by CEO Abhishek Bansal and Vaibhav Khandelwal in May 2015.