Mirae Group will undertake the acquisition via its ‘Late Stage Opportunities Fund’ and will also win the right to appoint of its representative on Shadowfax’s board
This comes close on the heels of reports that Shadowfax was giving finishing touches to its $60 Mn funding round which would be led by TPG NewQuest
Founded in 2015 by Vaibhav Khandelwal and Abhishek Bansal, Shadowfax is a 3PL platform that caters to hyperlocal and delivery businesses such as Meesho, Blinkit, Decathlon, Flipkart, and BigBasket
The Competition Commission of India (CCI) has approved Mirae Group’s proposal to acquire a minority stake in logistics company Shadowfax.
“Commission approves the proposed acquisition of (a) minority stake in Shadowfax Technologies Private Limited by the Mirae Group Entities,” said the markets watchdog in a social media post.
Mirae Global is a South Korea-based financial services giant that operates in India through its subsidiary Mirae Asset Capital Markets.
As per CCI, Mirae Asset plans to undertake the acquisition via its ‘Late Stage Opportunities Fund.’ The deal will also entail the right of appointment of a Mirae’s representative on Shadowfax’s board of directors.
The proposed combination involves… contemporaneously with the completion of the share acquisition, an acquisition of a right to appoint a director on the board of Target, collectively by Mirae Asset Naver New Growth Fund I (Mirae I), Mirae Asset– GS Retail New Growth Fund I (Mirae II), Mirae Asset– Naver Asia Growth Investment Pte. Ltd (Mirae III) and Mirae IV,” said a CCI order.
It is pertinent to note that all deals beyond a certain threshold require CCI’s permission. The markets regulator has been tasked with keeping an eye on unfair business practices among businesses and promoting fair competition in the marketplace.
This comes three months after reports surfaced that logistics startup Shadowfax was giving finishing touches to its $60 Mn funding round after more than a year of deliberations. Back then, it was reported that TPG NewQuest would headline the funding round.
Founded in 2015 by Vaibhav Khandelwal and Abhishek Bansal, Shadowfax is a third-party logistics platform that caters to hyperlocal and delivery businesses. While Meesho is its biggest client, the company also counts big names such as Myntra, Zomato-owned Blinkit, Decathlon, Flipkart, and BigBasket as its customers.
Shadowfax claims to deliver to more than 15,000 pincodes across the country and processes 15 Lakh orders a day and employs a workforce of 30 Lakh.
Backed by names such as Mirae, Flipkart, Qualcomm Ventures and Eight Roads Ventures, the startup has raised more than $120 Mn till date.
Curiously, the approval comes weeks after the competition watchdog gave its assent to a similar proposal filed by the Ontario teachers’ fund to acquire a minority stake in XpressBees. A week after that, the logistics unicorn bagged $80 Mn from the investment arm of the pension fund, Teachers’ Venture Growth (TVG).