B2B hyperlocal delivery startup Shadowfax secures $300K from Snapdeal’s founder and others
The euphoria around the hyperlocal delivery network is not subsiding and startups in the space continue to attract big money. The latest to secure money of prominent angels is Gurgaon-based Shadowfax which raised $300K from Kunal Bahl and Rohit Bansal of Snapdeal, Zishaan Hayath of Powai Lake Ventures, and Prashant Malik of Limeroad.
Shadowfax is an on-demand hyperlocal merchant delivery service. Currently, it handles clients like Pind Balluchi, Chhayos, Yo China and Fassos among 140 other outlets in NCR region. With this capital bolster, Shadowfax plans to have 35 plus employees and over 350 riders and expand into 10 more cities within the next one year.
The brainchild of IIT (D) alumni - Abhishek Bansal and Vaibhav Khandelwal, Shadowfax launched in May this year and claims to deliver 3K deliveries every day in Delhi (NCR). The volume (3K) appears mind-boggling for a three-month-old startup, however, it could be possible if the company is also ensuring delivery of Snapdeal in some areas.
According to YourStory's sources, the company is in advance talk to raise Series A from VCs firm, including Fidelity Growth Partners.
Speaking about difference in approach, Abhishek Bansal, Co-founder & CEO, Shadowfax, said,
We believe that improving the existing state of last mile delivery and hyperlocal logistics would enable all future business growth. At Shadowfax, we are looking to build India’s most formidable, credible and fastest merchant delivery service. To achieve our aim, we have invested in strengthening our people on-boarding & training with tech-enabled solutions that help us provide 100% service assurance.
Shadowfax has invested in robust and reliable technology that uses multiple modes of communication in order to provide relevant solutions in the Indian context. It employs integrated GPS tracking functions and automated algorithms in its product to improve the efficiency of the network.
Speaking about the thesis behind the investment, Zishaan Hayath of Powai Lake Ventures, said,
Abhishek and Vaibhav are focused on using technology as the core to build a strong merchant delivery network. This is a large problem with high fragmentation and the founders are obsessed with skill, efficiency and speed. This gives me the confidence that Shadowfax will grow into a very valuable company.
Besides food, the company further aims to take its services to multiple categories in hyperlocal segment. Shadowfax has a strategic tie-up with NSDC's training partners to enhance skills of riders and provide customized training that focused on continuous improvement.
B2B hyperlocal delivery startups are scaling fast as restaurants, food joints and small merchants don’t have logistics capabilities to ensure deliveries at consumers' doorsteps. Startups like Swiggy, Quickli, TinyOwl, and Roadrunnr are front runners in B2B hyperlocal delivery startups. Shadowfax primarily competes with aforementioned startups along with Pickingo and LazyLad.
Delivering 3K orders a day for any hyperlocal startup looks difficult, however getting quick scale in B2B hyperlocal space is comparatively easy than consumer facing delivery startups like Grofers and Peppertap. Also, the interest of biggies like Snapdeal and Paytm’s founders in hyperlocal delivery startups makes the space interesting. It’s also gearing towards consolidation and it would be exciting to watch how this space shapes up in the future.