Flipkart-backed Shadowfax nears $60 million funding led by TPG NewQuest

Indian logistics startup Shadowfax is finalizing a funding round of about $60 million, more than a year after it began the funding deliberations, two sources familiar with the matter said.

TPG’s NewQuest is positioning to lead the round, which also includes some secondary transactions, the sources said, requesting anonymity as the deliberations are private. The Bengaluru-headquartered startup, which counts Flipkart among its backers, earlier engaged with A91 Partners for the funding but the talks didn’t materialize over valuation mismatch, the sources said. Indian daily Economic Times earlier reported about the A91 Partners talks.

A deal with NewQuest could close as soon as this month, the sources said. Shadowfax didn’t respond to a request for comment Tuesday.

The startup, one of the largest logistics services provider to hyper-local, on-demand delivery businesses, has significantly pared its reliance on its largest customer Meesho in recent months and has been profitable for at least the past three months, the sources said. Its over-reliance on Meesho was a source of concern among many of its investors, people familiar with the matter said.

Shadowfax counts Myntra, Zomato-owned Blinkit, Decathlon, Flipkart, BigBasket and Practo among its customers. The startup’s losistics network reaches over 9,500 zipcodes across India and it works with over 3 million delivery personnels and processes 1.5 million orders a day, according to its website.

TPG NewQuest didn’t immediately respond to a request for comment. Shadowfax has raised about $121 million over the years.