On-demand logistics firm Shadowfax enters the cloud kitchen biz

Shadowfax, the Flipkart-backed on-demand logistics company, is diversifying its offerings. The company has entered into launched a cloud kitchen vertical.

The new vertical permits local restaurant brands of a city to be housed under one roof to cook delivery-only meals. This food can then be ordered through online food aggregators like Swiggy and Zomato.  

The Bengaluru-based firm’s new service directly competes with Swiggy’s cloud kitchen business, Swiggy Access. This service basically offers a kitchen space to restaurants to be able to make more sales without having to invest in infrastructure.

Shadowfax has started the cloud kitchen with Pune. The company already has around 20 restaurant brands on board.

Shadowfax’s cloud kitchen business is expected to be spun off as a separate entity over the next few months. It is also in the process of raising funds separately.

A person aware of the development said, “The company in talks with a few venture capitals to raise up to $20 million for its cloud kitchen business.”

The cloud kitchen business of the company has been operational from past three-and-a-half months, clocking about Rs 3 crore in sales in November. It is being spearheaded by Gaurav Jaythlia and Milind Sharma.