Flipkart Private Ltd., an Indian e-commerce company, has made financial investment in Shadowfax, which is a startup logistics company based in India. Walmart’s Flipkart is leading with a $ 60 million bid for funding the 4 years-old logistic company.
Present Status of Shadowfax
Shadowfax as a logistics company provides platforms that connect between delivery executives and e-commerce companies, which operate across 300 cities in India.
The company offers a crowdsourced network has around100,000 registered users on the platform who are working to provide services to the company.
According to Flipkart’s, CEO Kalyan Krishnamurthy, “We have seen strong synergies with Shadowfax through our existing engagement with them, and their investments in tech-enabled innovations will help us significantly reduce delivery time and provide superior customer experiences across product categories.”
Among Investors, Flipkart Holding More Stakes
With this funding, Flipkart plans to improve and expand its delivery services. According to the co-founder of Shadowfax, Abhishek Bansal, the deal will allow Flipkart to hold “a significant minority stake” in the company.
Several other investors including NGP Capital, Qualcomm Ventures, Mirae Asset Financial Group, Eight Roads Ventures, the Investment arm of Fidelity International, and World Bank-backed International Finance Corporation are also participating in the funding Shadowfax.
Benefits of Shadowfax in Flipkart’s Expansion
Flipkart made its earlier investment in two other logistics companies including QikPod, which provides Blackbuck and locker services. The funding in Shadowfax is the company’s third investment in a logistics startup.
The funding in these startups will help the company expand its chain subsidiary, Ekart, which provides the main delivery service of the e-commerce retailer. According to officials of Flipkart, this funding would expand its network, strengthen its tech platform, and increase the number of shipments to more than 100 million a month.
To expand its delivery service, Flipkart plans to launch a two-hour delivery service for its grocery business by early 2020. Its Shadowfax investment would help it in its next expansion plan.
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