Eight Roads’ $50 Mn Exit: What This Means for India’s Startup Market

In a major development within India’s thriving startup ecosystem, global venture capital firm Eight Roads Ventures has successfully sold its stakes in three prominent startups—MoEngage, Shadowfax, and Whatfix—to private equity player TR Capital, in a secondary transaction estimated at $50 million (approximately INR 428 crore).

This move reflects growing maturity in India's venture ecosystem, where early investors are now finding viable exit routes through secondary deals—a positive sign for both startups and investors navigating the growth-to-exit journey.

Three Startups, One Deal, and a Growing Trend

The deal, first reported by Mint, marks a strategic secondary transaction—meaning that Eight Roads didn’t cash out through a company’s IPO or acquisition, but by selling its existing shares in private companies to another investment firm. This kind of transaction is gaining popularity as more startups stay private longer while continuing to scale.

The three startups involved are among India's most promising growth-stage companies:

• MoEngage: A customer engagement and analytics platform that has become a go-to solution for marketers looking to build personalized experiences.

• Shadowfax: A logistics tech startup, known for its last-mile delivery network, serving both businesses and end consumers.

• Whatfix: A global leader in digital adoption platforms, helping enterprises train employees and customers on complex software applications.

Eight Roads had entered these companies at different points in their journeys—Shadowfax in 2015, Whatfix in 2019, and MoEngage in 2020. The exit, especially amid volatile global markets, reflects confidence in the long-term growth trajectory of these ventures.

An Early Exit, or a Well-Timed Move?

Interestingly, this is not the first exit Eight Roads made from Shadowfax. The VC had partially exited the logistics startup earlier this year during its Series E round in February 2024. Now, with this fresh secondary deal, it appears the firm has timed its exits to coincide with the startups’ next big leaps.

Notably, Shadowfax has just filed its draft red herring prospectus (DRHP) with SEBI for a potential IPO via the confidential pre-filing route, targeting a market listing worth INR 2,000–2,500 Cr. Nearly 50% of the IPO proceeds are expected to come from a fresh issue, suggesting expansion plans and financial stability.

The Buyer's Perspective: TR Capital Bets Big on India

Speaking on the transaction, Frédéric Azémard, Managing Partner at TR Capital, emphasized the growing sophistication of Asia’s secondary markets. He was quoted saying:

“Partnering with Eight Roads India showcased that capability: together, we translated a multi-asset opportunity into a win-win transaction for all parties involved. As an acknowledged pioneer of Asia’s secondary market, TR Capital will continue expanding its footprint and collaborating with top-tier partners such as Eight Roads to deliver value from complexity.”

TR Capital’s involvement indicates a growing appetite for quality Indian tech and SaaS (Software-as-a-Service) ventures that are yet to go public but have shown strong traction and revenue potential.

Eight Roads: Staying Focused, Rebalancing Portfolio

While this exit marks the end of one chapter, Eight Roads continues to remain a major force in India’s startup investment scene. Founded in 1969 and backed by Fidelity, Eight Roads has a strong focus on technology and healthcare startups. With over $1.6 billion in funds managed in India and a portfolio of over 70 companies, its presence is deeply entrenched in India’s growth story.

The firm had also launched a dedicated $250 Mn healthtech and life sciences fund in May 2022, which at the time was among the largest in the sector. Its current Indian portfolio includes notable names like PharmEasy, Blissclub, Chai Point, Exponent Energy, and Northern Arc.

This stake sale could simply reflect a portfolio rebalancing strategy—freeing up capital for newer opportunities or doubling down on sectors like healthtech and climate innovation.

What Lies Ahead for the Exited Startups?

All three startups—MoEngage, Shadowfax, and Whatfix—appear to be moving into their next growth phases.

• MoEngage recently began shifting its domicile to India, signaling a long-term bet on the Indian market, possibly ahead of a public listing.

• Whatfix continues its global expansion, serving Fortune 500 companies and likely gearing up for a listing in the next couple of years.

• Shadowfax, as mentioned earlier, is on the IPO path—one of the few logistics tech players to reach this milestone.

The secondary sale by Eight Roads, thus, does not signal any weakness—it’s a testament to the strong fundamentals and market readiness of these companies.

Why This Matters for the Indian Startup Ecosystem

This deal is significant on several fronts:

1. It shows real liquidity options for early investors—something that boosts confidence in India’s startup scene.

2. It validates the global appetite for India’s fast-scaling SaaS and logistics startups.

3. It highlights the growing role of secondaries, where investors don’t need to wait for an IPO or acquisition to exit profitably.

With several Indian startups moving toward IPOs or profitability, and new-age investors like TR Capital entering the mix, the ecosystem is maturing fast.

In a year when funding winters still linger in some parts of the world, a $50 Mn secondary deal is a bold and optimistic sign. It’s a reminder that India's startup journey isn't just about raising capital—it’s also about creating sustainable value, delivering returns, and paving the way for next-generation entrepreneurs and investors alike.

As India’s tech-led innovation continues to reshape industries, such secondary exits will become more frequent, more strategic, and more celebrated—for they represent the ultimate vote of confidence in India's entrepreneurial future.