Quick commerce is emerging as a new growth engine for Indian logistics startups. That’s the soft signal from Shadowfax’s Q3 FY26 earnings call.
Abhishek Bansal, co-founder and Chief Executive Officer (CEO) of Shadowfax, said that the company generated 17% of its revenue from its hyperlocal commerce arm in Q3 FY26. Under this vertical, it provides last-mile delivery services to food delivery and quick commerce platforms.
“If you look at the nine-month figures, hyperlocal is growing at about 66% year-on-year, driven largely through the advent of quick commerce,” Bansal said during the company’s Q3 earnings call.
While Express Parcel is still the largest revenue driver for the new-age logistics firm, its hyperlocal commerce vertical is gradually picking up pace, the management said. Express Parcel revenue surged 72% year-on-year (YoY) to Rs 878 crore in the December quarter, while revenue from the hyperlocal arm rose 43% YoY to Rs 200 crore.
Transitioning From Marketplace-First to D2C-First Logistics Player
During the Q3 FY26 earnings call, Shadowfax’s CEO said that the next phase of growth for the Bengaluru-based company will not be driven solely by large ecommerce enterprises, but also by smaller direct-to-consumer (D2C) brands and horizontal and vertical quick commerce players.
“We’ve built our network through anchor customers. We’ve achieved profitability through anchor customers in the last few years. Now, taking our existing service to new customers is a big market share expansion strategy that we’re going after. This includes investments in strategies such as same-day delivery and Prime Delivery Services to onboard new-age brands,” said Bansal.
Founded in 2015, Shadowfax operates in the last-mile and hyperlocal logistics space, catering to ecommerce marketplaces, D2C brands, and quick commerce players. It competes against companies such as Delhivery, XpressBees, and Ekart in a segment marked by fierce competition.
The Shadowfax Prime Playbook
Shadowfax’s immediate priority is scaling Shadowfax Prime Delivery Services. Under this offering, the company provides same-day and next-day delivery to ecommerce and D2C firms. According to the management, Prime Delivery Services is the fastest-growing vertical for the logistics firm.
“Two years back, our market share in D2C was barely anything. Last year, it was in single digits. Today, we’re already in early teens in terms of growth percentage and constantly onboarding new customers and gaining market share,” Bansal said.
Shadowfax’s clients include Flipkart, Meesho, Purplle, Uber, Nykaa, AJIO, Myntra, Dot & Key, Mokobara, and The Souled Store, among others.
Currently, Shadowfax caters to users across more than 15,000 pin codes in India, with investments in same-day delivery and Prime services underway. To onboard new customers and gain market share in the 30-minute delivery segment, the company plans to expand its…
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