Shadowfax Intends To Raise $75-$100 M

Valuation likely to touch $350-$400 million, foreign players eying to invest.

According to the sources, Hyperlocal logistics startup Shadowfax is on the negotiation table to raise $75 to $100 million. It would be a mix of primary and secondary capital.

A91 Partners, Mumbai based investment firm is in talks to finance the primary part of the deal, sources said on the condition of anonymity, owing to the fact that the talks are not public yet.

The possibilities are high that Eight Roads Ventures, backed by Fidelity, is expected to sell a chunk of its stake in the secondary share sale. 

Sources added that Canada Pension Plan Investment Board (CPPIB) and NewQuest Capital Partners, have expertise in buying secondary sales stakes, and held a discussion to buy the stake from Eight Roads.

In the midst of a hyperlocal startup boom, Bansal and Vaibhav Khandelwal founded Shadowfax in 2015 as a hyperlocal delivery service. Since then, Shadowfax has expanded its clientele to include more e-commerce enterprises like Meesho.

If the purchase goes through, Bengaluru-based Shadowfax, which is backed by domestic e-commerce powerhouse Flipkart, will probably be valued at $350-$400 million.

Shadowfax's sales increased from Rs 323 crore in FY20 to Rs 464 crore in FY21, according to its annual reports.

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