E-commerce marketplace Flipkart is likely to invest $40m in India-based on-demand logistics provider Shadowfax at a $200m valuation, the Economic Times reported today, citing two people familiar with the matter.
“Flipkart has put in a term sheet and the due diligence is ongoing right now,” one of the sources told ET.
Shadowfax offers last-mile delivery for businesses selling food, groceries and pharmaceuticals. It is active in more than 200 cities and can access a network of more than 1,000 commercial vehicles in addition to some 35 air routes.
The deal would heighten Flipkart’s delivery capabilities in the areas in which Shadowfax already operates, while potentially laying the ground for the latter to expand into new categories.
The company has so far raised almost $41m since it was founded in 2015, most recently securing $22m in an August 2018 series C round that valued it at approximately $91m according to ET.
Qualcomm Ventures, mobile chipmaker Qualcomm’s corporate venturing unit, invested in the series C round, as did venture capital firm NGP Capital, fund manager Mirae Asset and Eight Roads Ventures, which is owned by investment and financial services group Fidelity.
Eight Roads Ventures had already led Shadowfax’s $10m series B round in 2016, the year after it invested $8.5m in the company.
