Flipkart-backed hyperlocal logistics startup Shadowfax has acquired logistics firm CriticaLog for an undisclosed amount.
The acquisition will enable it to expand its offerings by introducing tailored, high-value logistics solutions across a wide range of sectors, Shadowfax said in a statement on Monday.
“We are excited about the merger with Shadowfax. By leveraging their expansive reach and advanced technology capabilities, we can bring Criticalog’s premium logistics solutions to a wider customer base. This partnership will enable us to not only strengthen our existing relationships but also introduce our critical logistics services to a new and growing audience,” said Sujoy Guha, CEO of CriticaLog.
Founded in 2013 by Guha and Samir Panda, CriticaLog is a technology-driven premium logistics firm offering logistics solutions in sectors such as healthcare, automotive, engineering, luxury high-value shipments and IT supply chains. It serves over 400 organisations, including multinational corporations.
Shadowfax, which currently operates across more than 2,500 cities and 18,000 pin codes, provides third-party logistics services to ecommerce firms and direct-to-consumer brands.
The acquisition follows Shadowfax’s financial turnaround in the last fiscal year. The company reported an adjusted profit after tax (PAT) of Rs 2 crore in FY24, a significant improvement from a Rs 123.8-crore loss in FY23. Revenue grew 33% on year to Rs 1,885 crore in FY24, up from Rs 1,415 crore a year earlier.
In October 2024, ET reported that Shadowfax was in advanced stages of raising Rs 350-400 crore ($45-50 million) in a funding round, potentially doubling its valuation to Rs 5,500-6,000 crore ($700 million). This round, expected to be the company’s final private funding before a potential initial public offering (IPO), was primarily aimed at investing in quick commerce, dark store operations and same-day delivery.
Earlier in February 2024, Shadowfax raised $100 million through a mix of primary and secondary investments in a round led by growth investor TPG NewQuest.
Founded in 2015 by IIT Delhi alumni Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra and Gaurav Jaithliya, Shadowfax has transitioned from being an on-demand logistics provider for food delivery platforms to catering to ecommerce clients, including Meesho.
This development comes days after Singapore-based private equity firm Everstone Capital acquired around 80% of the bootstrapped software-as-a-service startup Wingify for approximately $200 million.
“This move aligns perfectly with our mission to solve the most challenging last-mile problems in India today. With this acquisition, we are excited to expand our capabilities in delivering high-value items safely and reliably to more pin codes, benefiting our existing clients and opening new opportunities,” said Bansal.
Source: Economic Times