SHADOWFAX

The push for digitization has undoubtedly boosted the startup ecosystem and forced businesses to reach out to their target customers online with goods and services. Growing digitization has enabled entrepreneurs and other people to market and broadcast themselves online via a variety of social media platforms, alongside startups and established brands and businesses. In this case, it’s true that contacting the general public virtually or online has grown to be simple, but getting the message to the right people at the right time has always been difficult.

Shadowfax, an on-demand delivery service with headquarters in Bengaluru, promises quick, safe, and convenient deliveries made possible by cutting-edge technology and an unmatched network. According to its website, which offers on-demand hyperlocal delivery with better delivery statistics, the company was founded in 2015 and has grown to become India’s largest hyperlocal delivery platform. Additionally, it provides e-commerce and quick commerce orders quickly and with the highest level of security.

A provider of an on-demand hyperlocal delivery technology designed to free up merchants’ time to concentrate on their main activities. The company’s platform provides businesses with access to cutting-edge logistics technology and a dependable delivery network, enabling customers to receive quick delivery easily. It also offers tech-enabled one-stop delivery services for e-commerce, restaurants, FMCG, pharma, and online and offline retailers.

ABOUT SHADOWFAX AND HOW IT WORKS?

By outsourcing last-mile delivery services, Shadowfax, a provider of an on-demand hyperlocal delivery platform, aims to enable businesses to concentrate on their primary activities. The company’s effective methods include a thorough examination of the delivery statistics, order tracking, and access to customer information. Indian clients are served by Shadowfax Technologies. You may easily track an order through Shadowfax by visiting tracker.shadowfax.in, inputting the AWB number, and then clicking “Track Order.”

The company’s platform offers tech-enabled one-stop delivery services for E-commerce, restaurants, FMCG, pharmacy companies, and online and offline retailers. It also provides the businesses with cutting-edge logistics technology and access to a dependable delivery network, making quick and effective delivery possible.

With more than 50,000 delivery partners, Shadowfax has quickly grown to be one of India’s biggest last-mile delivery networks. Shadowfax’s last-mile logistics network is technologically advanced and functions as a one-stop delivery service. Shadowfax’s innovative app makes it simple for businesses and people to deliver food, groceries, prescription drugs, and e-commerce items, truly delighting their consumers in the process. Shadowfax benefits both the brands and the riders, enabling faster deliveries, thanks to its feature-rich technology and unrivalled network.

BENEFITS FOR THE BRANDS

  • Shadowfax enables personalised deliveries.
  • Shadowfax guarantees to satisfy the changing business needs with an in-demand rider network.
  • delivery of goods to homes in many categories

BENEFITS FOR THE RIDERS

  • Shadowfax increases ride flexibility
  • The riders may maximise their day by managing just one app.
  •  Shadowfax claims of quicker payouts and limitless earning opportunities for the riders.

Once they have created their own Shadowfax accounts, anyone can utilise the Shadowfax app by going through a simple Shadowfax login process. Domino’s, Big Basket, Amazon, PayTM, Flipkart, Myntra, McDonald’s, 1MG, and many other smaller eateries, shops, and merchants are just a few of the several large corporations that Shadowfax serves as clients. The business presently claims to have more than 100 brand partners. Bengaluru, Karnataka, India is home to the Shadowfax office.

FOUNDERS AND TEAM

Abhishek Bansal and Vaibhav Khandelwal, both graduates of the IIT Delhi, created Shadowfax in April 2015. They were then joined by Gaurav Jaithliya and Praharsh Chandra, also graduates of the IIT Delhi.

  • Abhishek Bansal– IIT Delhi awarded Abhishek Bansal a BTech in Production and Industrial Engineering. Bansal co-founded Shadowfax, where he now holds the positions of Co-founder and CEO, after spending two years working for Hay Group as a Business Analyst and Associate Consultant.
  • Vaibhav Khandelwal- Vaibhav Khandelwal earned his Btech in Electrical and Electronics & Communication Engineering from IIT Delhi, where he was a fellow student. Khandelwal worked as a Research Analyst for System Two Advisors, LP after beginning as a Research Intern at Adobe. He did, however, quit his position after only a year and ultimately made the decision to co-found Shadowfax with Bansal. At the moment, Vaibhav is Shadowfax’s co-founder and CTO.
  • Gaurav Jaithliya -In addition, Gaurav Jaithliya attended IIT Delhi, where he earned a Dual Degree in Mathematics and Computing. Gaurav’s initial employer was GulfTalent, and he then joined Shadowfax as a co-founder and the chief of business strategy, a position he is still holding now.
  • Praharsh Chandra- Like his fellow classmates, Mechanical Engineering student Praharsh Chandra earned his Btech from IIT Delhi and subsequently interned at HUL. Chandra joined A.T. Kearney after serving an internship for roughly three months. He spent almost two years working for the company, first as a Business Analyst and then as a Senior Business Analyst. Ultimately, he left and co-founded ShadowFax. At Shadowfax Technologies, Praharsh Chandra is currently a co-founder and the chief operating officer.

STARTUP STORY

Shadowfax was originally intended to be a player in the food delivery market, but it was eventually expanded to serve other market segments, including groceries, lifestyle, electronics, pharmacy, furniture, and other rapid mail deliveries, allowing it to develop into the organisation that exists today.

GOALS AND MISSION

The motivation behind all we do at Shadowfax is to empower a million micro-entrepreneurs through technology while establishing a quick and trustworthy logistics network.”Enable commerce by enabling lives for everyone, everywhere,” is the company’s mission statement.

NAME AND SLOGAN

The fabled monster from “Lord of the Rings” that inspired the name Shadowfax was the chief of Mearas, the mount that Gandalf the Grey rode. The horse was well known for its swiftness, which was frequently referred to as being “like an arrow” or “faster than the wind.” According to Shadowfax’s website, the company is named after the “Lord of all horses,” “who is an embodiment of enormous speed and communication, much like our trustworthy & nimble logistic capabilities.”

THE LOGO’S MEANING

The paper aeroplane in the company logo of Shadowfax suggests that Shadowfax provides quick delivery services. By outsourcing last-mile delivery services, the company’s on-demand hyperlocal delivery platform aims to enable merchants to concentrate on their core businesses.

REVENUE AND BUSINESS MODELS

As of right moment, Shadowfax runs an extraordinarily developed business-to-business logistics network in more than 700 Indian cities. The firm uses the space of nearby stores to store products and a vast network of independent contractors for delivery. E-commerce currently makes up 30% of Shadow fax’s revenue, which is the largest contribution. Next with a 25 percent share, food and groceries are followed by reverse logistics with a 20 percent stake. Additionally, Shadowfax features a courier tracking system that offers online automatic tracking for packages. Instead of going to the courier station or calling the customer support centre, customers can check the status of their packages online.

REVENUE AND GROWTH

For the fiscal year that ended on March 31, 2019, Shadowfax Technologies Private Limited’s operating revenues ranged from INR 100 crore to INR 500 crore. At the same time as its book net worth climbed by 60.17 percent, its EBITDA plummeted by -96.32 percent over the prior year. In FY21, Shadowfax’s operating sales climbed by 43.7 percent to Rs 464 crore from Rs 323 crore, according to the most recent documents retrieved on February 2, 2022. During FY20, the company’s revenue increased by 93%. The company’s EBITDA decreased from -24.33 percent in FY20 to -25.09 percent in FY21. Additionally, Shadowfax’s yearly losses increased by 53.5 percent in FY21 from FY20 to reach Rs 132.87 crore from Rs 86.56 crore.

THE FOLLOWING ARE SOME OF THE SIGNIFICANT ADVANCEMENTS THAT SHADOWFAX CAN NOW POINT TO:

  1. Shadowfax claims to be the largest hyperlocal delivery platform, with more than a million users.
  2. It has an estimated 100K daily users.
  3. The business completes 20M+ deliveries each month.
  4. It is currently in use in more than 700 cities.
  5. The services provided by ShadowFax cover more than 7000 pincodes nationwide.
  6. Flipkart, Zomato, Myntra, P&G, and other well-known businesses from a variety of industries trust Shadowfax.

FUNDING AND INVESTORS

Over the course of 7 rounds, Shadowfax has raised a total of $131.7M in investment. On December 5, 2019, it received its most recent fundraising from a Series D round in which Flipkart assisted the company in raising $60 million. According to sources dated July 12, 2022, the company has begun a new funding round from the existing Shadowfax investors. Trifecta Capital and Qualcomm joined the round with fundings of Rs 10 crore and Rs 7.76 crore, respectively. Flipkart has already invested Rs 77.56 crore in this latest round. By issuing 16,919 Series D2 CCPS at an issue price of Rs 56,338 for the Series E round, which totaled Rs 95.32 crore ($12 million) in investment so far, Shadowfax has made up the difference.

According to additional reports, the Series E round hasn’t completed yet, and the company will probably receive an additional $50 million in the following weeks.

13 investors are helping to finance Shadowfax. The most recent investors include Flipkart and Mirae Asset-Naver Asia Growth Fund. Following the Series E round, the company is currently valued at $600 million.

EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)

On December 8, 2020, Shadowfax introduced an employee stock ownership plan (ESOP) buyback programme. The ESOP plan, which had an estimated $5 million total worth, was created exclusively to reward the company’s employees as the business recovered after the pandemic. According to the buyback plan, Shadowfax permitted the eligible workers who were given ESOP options and who have served the company for more than 4 years to sell 35% of their allocated or vested ESOP shares. Additionally, Praharsh Chandra and Gaurav Jaithliya were promoted to co-founders of Shadowfax during the same announcement, effective in December 2020. Then, the respective chiefs of strategy and investment and operations were Jaithliya and Chandra.

ACQUISITIONS

Shadowfax has purchased 2 businesses. NuvoEx and Pickingo on Nov 9, 2015. NuvoEx was its most recent acquisition as of October 31, 2017.

AWARDS AND RECOGNITIONS

Every now and again since Shadowfax was founded, the business has won prizes and recognitions. The following is a list of the notable honours and accolades received by Shadowfax:

  1. At the 4th CSR Health Impact Awards, 2020 COVID Edition, the business received the Silver Award for Outstanding Performance in the COVID Focussed Community Support.
  2. At the 10th Aegis Graham Bell Awards, 2020, Shadowfax was named the winner in the category of Innovation in Transport Tech
  3. The company was honoured by ET at its Now Stars of the Industry Awards, 2019 as the recipient of Excellence in Innovation.
  4. At the 9th Inflection Conference & Awards, 2019, Shadowfax was also given the distinction of Disruptive Startup Logistics of the Year winners.
  5. At the 2019 Excellence Super Star Awards, Amazon named Shadowfax the Best Emerging Service Partner. Additionally, Shadowfax boasts of having won the 2019 Flipkart Last Mile Agency Award for providing last-mile delivery services.
  6. At the 2019 Mahindra Transport Excellence Awards, Shadowfax was also honoured as the Dream Chasers for Driving Positive Change award. The business was also included in Forbes’ 2019 list of the 30 Under 30.

CHALLENGES FACED

Initial operational difficulties forced the startup company to devise a novel strategy rapidly. According to Abhishek Bansal, they learned that operating in many categories with distinct peak times was the key to a successful business. The efficiency would be increased because one delivery boy could serve many groups. The company had a minus 35% margin in January 2016, and by the end of the year, it had a 4% margin. In 2017, the business tripled in size.

Every platform that engages in same-day delivery, according to Bansal, uses Shadowfax, and there isn’t a single business that isn’t collaborating with the company. Understanding what the most sustainable business model is and identifying a product-market fit have helped Shadowfax achieve significant entrepreneurial milestones quickly.

HOW A WIDE RANGE OF O2O BUSINESSES CAME TO RELY ON SHADOWFAX?

Abhishek Bansal, a co-founder of Shadowfax, encountered the persistent logistics issue of last-mile delivery while working abroad with one of the biggest retailers in the world. This issue is a result of the growth of O2O commerce. In 2014, when he returned to India, he saw that organised retail was still lacking. When Foodpanda, Swiggy, and other companies were attempting to develop an O2O model, a wave of realisation suddenly hit, as Bansal puts it: “All of these platforms are going to face the common problem of delivery when the demand overflows.”

According to Bansal, the idea was to “Make a horizontal platform where all of these organisations can be integrated and used as needed to send goods to their surrounding clients without interfering with their commitments. This struck us as a good business concept.” Shadowfax was introduced in April 2015 with a clear goal of being the foundation of all these development sectors and a vision of reducing the last-mile delivery time from the weeks that were typical circa 2014 to same-day deliveries.

UPCOMING PLANS

Within the next five years, Shadowfax hopes to double its present order volume and serve customers throughout the entire nation. Shadowfax hopes to grow 10X in the following five years based on the potential expansion of the Indian market. The business is likewise focused on reducing traffic and commuting times and making a positive impact on the environment.

REFERENCES

https://www.forbesindia.com/article/take-one-big-story-of-the-day/firmly-in-the-saddle-how-shadowfax-emerged-as-the-lord-of-the-ondemand-delivery-marketplace-for-enter-prises/70615/1

https://www.itln.in/we-see-ourselves-growing-10x-in-the-next-five-years-shadowfax-coo-logistics

https://startuptalky.com/shadowfax-success-story/#Shadowfax_-_About_and_How_it_Works?

https://www.livemint.com/Money/PapzqY80t7UHpXVa6PRcnI/Delivery-startup-Shadowfax-raises-funding-from-NGP-Cap-Qua.html

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