Indian logistics company Shadowfax is expanding aggressively into quick commerce, with plans to set up 100 dark stores in FY27 as it looks to strengthen its position in the fast-growing hyperlocal delivery market.
The company announced the expansion during its Q4 FY26 earnings call, where management identified vertical quick commerce as a major future growth driver. Unlike horizontal quick commerce platforms that handle broad categories, vertical quick commerce focuses on specialised segments such as fashion, gourmet food, childcare products, pet care, spare parts, and construction materials.
Shadowfax currently operates around 15 dark stores and intends to scale the network nearly seven-fold over the next fiscal year. According to company executives, pilot projects have already demonstrated viable unit economics, encouraging a wider rollout in key urban markets.
The company said it sees stronger profitability potential in vertical quick commerce compared to traditional horizontal platforms. Management argued that specialised quick commerce brands are more dependent on third-party logistics providers, creating higher-value delivery opportunities and reducing overreliance on a small number of large clients.
Shadowfax also indicated that the next phase of quick commerce growth in India will extend beyond groceries into categories that have historically depended on offline retail. The company said demand for 30-minute delivery models is expanding across sectors ranging from fashion and childcare to hardware and building materials.
As part of the expansion strategy, the company plans to integrate artificial intelligence deeper into its logistics operations. AI tools are being used for demand forecasting, slotting, picking, and automation of sorting centres, which the company believes will help improve operational efficiency and reduce expansion costs.
Shadowfax said it aims to expand its delivery reach to 17,000 pin codes by the fourth quarter of FY27, up from more than 15,600 currently.
The company’s hyperlocal commerce business recorded strong growth in FY26, supported by rising quick commerce volumes. Revenue from quick commerce deliveries increased around 80% year-on-year, while express parcel revenue in Q4 FY26 rose 121% compared to the previous year. Total order volumes crossed 22 crore during the quarter.
Shadowfax also stated that its share in India’s third-party logistics market has risen from nearly 8% to around 27-29% over the last four years, placing it among the country’s leading 3PL operators. The company competes with players such as Delhivery and Shiprocket.
The expansion comes amid a broader boom in India’s quick commerce sector, where companies are rapidly increasing investments in dark stores, hyperlocal logistics, and ultra-fast delivery infrastructure to capture growing urban demand.
