Hyperlocal logistics startup Shadowfax is planning to raise $75-100 million in a mix of primary and secondary capital, as per reports.

Mumbai-based investment fund A91 Partners is in discussions to finance the primary part. The deal is currently in the due diligence stage, they added on condition of anonymity as the talks are private.

Eight Roads Ventures, backed by Fidelity, an early backer of Shadowfax, is expected to sell part of its stake in the secondary share sale.

According to reports, Bengaluru-based Shadowfax, backed by homegrown e-commerce player Flipkart, is likely to be valued at $350-$400 million if the deal goes through.

The due diligence is currently ongoing and A91 is expected to close the primary funding. The secondary sale is still not final so the contours of the round may change.

Currently, the company is clocking around Rs. 110 crore in monthly revenue with (cash) burn of four crores, indicating consistent growth with reduction in losses.

Founded in 2015 as a hyperlocal delivery service by Bansal and Vaibhav Khandelwal amid a big rush of hyperlocal ventures, Shadowfax has transitioned to serving more e-commerce players like Meesho from initially being an on-demand logistics provider to food-delivery companies.

Ecommerce business is becoming more critical for Shadowfax as food-delivery platforms like Swiggy are trying to solve the hyperlocal problems in-house and the acquisition of Rapido is a testament to that, as per reports.

Prahlad Tanwar, global head of logistics sector, KPMG says, “The Indian e-commerce industry is expected to grow 35-40 percent over the next five years. While the industry is currently registering about 8 million shipments a day, it is expected to go up to 23-24 million shipments by 2026. Despite having a handful of established players like Delhivery, Ecom Express and Xpressbees, e-commerce logistics is a very exciting and fast-growing space to be in.”