Taking on troubled startup Dunzo, logistics startup Shadowfax on Wednesday (December 20) announced its foray into the on-demand delivery space with the launch of its app Flash. 

The new service will offer last-mile delivery solutions to customers in more than 50 cities within 30 minutes. Users will be able to make pickup and drop-off requests through the app, which will cater to both merchants and end customers within the city limit. 

In a statement, the startup said that the Flash platform has introduced a new concept of ‘milk run deliveries’, enabling customers to consolidate multiple shipments on a single route which, in turn, would optimise efficiency and lower delivery costs. 

Touting the new platform as a ‘cost-efficient logistics solution’ that prioritises speed and reliability, Shadowfax said that Flash also integrates GPS technology to offer full visibility into delivery and ensuring real-time tracking capabilities.

Commenting on the launch, Shadowfax cofounder and chief business officer Praharsh Chandra said, “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…”

The new offering pits Shadowfax directly against Dunzo. Flash will enable the company to tap into the growing demand for on-demand delivery and further diversify its portfolio. Alongside, the move will also enable the company to further scale up its offerings and create alternative revenue streams. 

The development comes at a time when Dunzo is facing a major cash crunch and has shelved its expansion plans. With the hyperlocal startup in disarray, it looks like an opportune time for Shadowfax to enter the space that has been dominated by Dunzo for the past many years. 

Interestingly, the new launch comes a month after the Competition Commission of India (CCI) greenlit Mirae Group’s proposal to acquire a minority stake in Shadowfax. The move also comes months after reports surfaced that the logistics giant was finalising a $60 Mn funding round led by TPG NewQuest.

Founded in 2015 by Vaibhav Khandelwal, Abhishek Bansal, Chandra and Gaurav Jaithliya, Shadowfax is a third-party logistics platform that caters to hyperlocal and delivery businesses. 

The startup claims to have a network of more than 1.25 Lakh monthly active delivery partners that deliver to more than 15,000 pincodes and 35 Lakh registered users. 

It is backed by big names such as Mirae, Flipkart, Qualcomm Ventures and Eight Roads Ventures. With customers such as Meesho, Myntra, Zomato-owned Blinkit, and Flipkart in its kitty, Shadowfax has raised more than $120 Mn till date.

Shadowfax reported a net loss of INR 142.63 Cr in the fiscal year 2022-23 (FY23), down 19% year-on-year (YoY), while total income rose 42% YoY to INR 1,423 Cr.