Flipkart has led a $60 million investment round in logistics startup Shadowfax, as India’s largest online retailer looks to enable faster 2-hour delivery using a hyperlocal network and launch newer on-demand categories.
Flipkart has an existing partnership with Shadowfax for logistics across various categories for its e-commerce business. It is working towards bringing kirana stores into the e-commerce fold by enabling them to be a part of this offering, it said. Its hyperlocal approach aims to place inventory closer to customers, leveraging existing investments of space and working capital of kirana stores to accelerate delivery timelines.
“We have seen strong synergies with Shadowfax through our existing engagement with them, and their investments in tech-enabled innovations will help us significantly reduce delivery time and provide superior customer experiences across product categories. By leveraging kirana stores and the deep delivery capabilities of Shadowfax and other Flipkart-led innovations, we are building a strong foundation to make inroads into a dynamic hyperlocal consumer market," says Kalyan Krishnamurthy, CEO of Flipkart Shadowfax, which was founded in 2015, enables delivery of 10 million monthly shipments across diverse segments, ranging from hot food to grocery to fashion and electronics. Its clients include a slew of e-commerce firms such as Swiggy, Amazon, Paytm, Snapdeal, and BigBasket.
“We aim to grow 10x in the next four years and take the company public. The growth has been fantastic in the last two years. We also plan to invest in backward integration and build automated warehouses, taking the six warehouses we have now to 10. It will also enable us to innovate with the largest online platform in India and build core capabilities that can be democratized for the larger logistics ecosystem, Shadowfax aims to creating a million micro-entrepreneurs in the next five years," says Abhishek Bansal, CEO of Shadowfax.
Shadowfax has grown by 3X in the last 15 months. "We believe, considering the depth of the India market and potential, we can grow 10X in the next 4 years and take the company public," adds Abhishek Bansal, CEO of Shadowfax Flipkart’s revenue grew 42% to over $6 billion ( ₹42,878 crore) in the year ended 31 March 2019, compared with ₹30,164 crore ($4.2 billion) in the previous fiscal year, according to the annual financial statement filed by its Singapore holding firm in November.