Delhi-based hyperlocal technology startup ShadowFax has raised $8.5 million in Series A round by Fidelity’s proprietary investment arm, Eight Roads Ventures. ShadowFax is an on demand delivery service focused on intra-city deliveries, serving the local delivery requirements of neighbourhood merchants.
The funding will be used by ShadowFax to rapidly scale-up and expand across several cities.
The company was co-founded by IIT Delhi graduates- Abhishek Bansal and Vaibhav Khandelwal. In August 2015, it had raised an investment of $300,000 in an angel round led by Kunal Bahl and Rohit Bansal of Snapdeal, Zishaan Hayath of Powai Lake Ventures, and Prashant Malik of Limeroad.
ShadowFax uses technology as a key enabler to drive operational efficiencies and create client stickiness with merchants. With an initial focus on the restaurant industry, the Company aims to diversify into other verticals such as grocery, bakery, pharmaceuticals and e-commerce.
Growing conspicuously, ShadowFax has spread its footprints across 3 cities within the first 4 months. With the key focus on service quality, Shadowfax claims to deliver 95% of the orders in less than 15 minutes from pick up.
Commenting on the matter, Abhishek Bansal said, “India has over 10 million local merchants. With increasing number of consumer facing hyper-local platforms, most of them seek to serve their consumers directly in their homes to expand their business. Due to lack of third party logistics options, the merchants themselves cater to the logistics by employing in-house personnel, which is inefficient and not scalable. The market need has led to the growth of specialist express delivery services, that are able to aggregate and meet demand the delivery requirements.”
One of its potential competitors is Quickli, an on-demand local delivery network for businesses, founded by Rohan Diwan and Sudhanshu Aggarwal in January 2015. The startup bridges the last mile gap between retailers and customers.