In a strategic move to compete with the troubled startup Dunzo, logistics firm Shadowfax has unveiled its new on-demand delivery service through the app ‘Flash.’ With this launch, Shadowfax aims to revolutionize last-mile delivery, offering efficient solutions to customers in over 50 cities within a remarkable 30-minute timeframe.
The Flash app introduces the innovative concept of ‘milk run deliveries,’ allowing customers to consolidate multiple shipments on a single route, optimizing efficiency and reducing delivery costs. Emphasizing speed and reliability, Shadowfax ensures a cost-efficient logistics solution by integrating GPS technology, providing users with real-time tracking capabilities.
Praharsh Chandra, Cofounder, and Chief Business Officer at Shadowfax expressed enthusiasm about the launch, stating, “We are thrilled to introduce Flash by Shadowfax. This service aligns with our commitment to innovation and customer satisfaction, providing a comprehensive solution for efficient, on-demand logistics.”
This strategic move directly positions Shadowfax in competition with Dunzo, particularly opportune as Dunzo grapples with financial challenges, resulting in a halt to its expansion plans. Flash not only enables Shadowfax to tap into the growing on-demand delivery market but also diversifies its portfolio, allowing the company to scale up its offerings and create alternative revenue streams.
The announcement comes on the heels of the Competition Commission of India’s approval of Mirae Group’s proposal to acquire a minority stake in Shadowfax. Additionally, reports of a potential $60 million funding round led by TPG NewQuest have surfaced, showcasing investor confidence in Shadowfax’s potential for growth.
Founded in 2015, Shadowfax has become a significant player in the third-party logistics sector, serving hyperlocal and delivery businesses. Boasting a network of over 1.25 lakh monthly active delivery partners, the startup caters to more than 15,000 pincodes and serves 35 lakh registered users. Notable backers include Mirae, Flipkart, Qualcomm Ventures, and Eight Roads Ventures.
Despite facing a net loss of INR 142.63 crore in FY23, a 19% YoY decrease, Shadowfax reported a 42% YoY increase in total income to INR 1,423 crore, indicating a positive trajectory for the company in the competitive logistics landscape.
