Shadowfax IPO
IPO Price Range: Not Announced Yet
Objectives of IPO
- The total Initial Public Offering (IPO) size aggregates up to ₹2,000 crore, including a fresh issue, which aggregates up to ₹1,000 crore, and an offer for sale (OFS), also aggregating up to ₹1,000 crore. The money raised from the fresh issue will go directly to the company to fund its objectives. However, the company will not receive any proceeds from the OFS portion. These proceeds will instead go to the selling shareholders, which include investors like Flipkart Internet Private Limited (worth up to ₹237.07 crore) and Eight Roads Investments Mauritius II Limited (₹197 crore), as well as individuals such as Kunal Bahl and Rohit Kumar Bansal (each offering up to ₹14.02 crore).
- The fresh issues will be used for funding capital expenditure for network infrastructure, as it plans to spend an estimated ₹423.43 crore. This investment is scheduled across FY26, FY27, and FY28 and is primarily focused on acquiring technology like automated cross-belt sorters (costing ₹304.25 crore), X-Ray machines, and IT assets. This equipment is meant to reduce manual effort and improve scalability in its logistics operations.
- An estimated ₹138.64 crore will be used for lease payments for new centers during FY27, FY28, and FY29. This is broken down into approximately ₹115.53 crore for new First and Last-mile centers and ₹23.12 crore for new sort centers, helping to expand its physical network across India.
- It will allocate an estimated ₹88.57 crore towards brand-building and communication initiatives. This funding is crucial for enhancing its brand image, especially to attract direct-to-consumer (D2C) and small/medium enterprise clients.
- The balance funds will be utilized for unidentified acquisitions and general corporate needs. This covers routine business operational expenses such as delivery partner fees, transportation costs, and employee salaries.
Financial Performance of Shadowfax
The company has demonstrated rapid revenue expansion and a critical shift towards profitability. Top-line performance shows accelerating growth, with total income increasing at a 32.9% Compound Annual Growth Rate (CAGR) from ₹1,422.89 crore in FY23 to ₹2,514.66 crore in FY25. This momentum intensified significantly in the first half of FY26 (H1 FY26), surging 67.1% year-over-year to ₹1,819.8 crore. This rise was primarily fueled by strong demand, notably a 102.15% growth in hyperlocal services (FY24 to FY25) driven by quick commerce platforms.
The company successfully transitioned from heavy losses to consistent profit. It reduced its net loss dramatically from ₹142.64 crore in FY23 to just ₹11.88 crore in FY24, achieving a profit of ₹6.43 crore in FY25. Profitability further more than doubled in H1 FY26 to ₹21.04 crore, marking a 113.9% year-over-year change. This positive trend reflects expanding operational efficiency, seen in the adjusted EBITDA margin, which successfully climbed from negative 7.18% in FY23 to a peak of 2.86% in H1 FY26. This margin improvement is partly attributed to achieving operating leverage, which caused employee benefit expenses to decline as a percentage of revenue.
The balance sheet saw robust growth, with total assets increasing at a 93.5% CAGR from FY23 to FY25. Borrowings (including lease liabilities) fluctuated significantly. Total borrowings initially dropped from ₹66.69 crore in FY23 to ₹40.33 crore in FY24, due to repayment of loan installments. However, indebtedness then surged to ₹132.23 crore in FY25 and ₹147.44 crore in H1 FY26. This increase was primarily driven by the expansion of the business network through long-term leases for additional facilities. Consequently, the debt-to-equity ratio, after dipping sharply in FY24, rebounded to 20.02% in FY25 due to the capitalization of these new lease liabilities.
Strengths and Risks
Strengths
It is the fastest-growing third-party logistics (3PL) company of scale, dramatically increasing its e-commerce shipment market share from 8% (FY22) to approximately 21% (three months ended June 30, 2025). It also leads the market in specific services like reverse pickups, same-day delivery, and quick commerce, measured by order volume.
It demonstrates a strong capacity for expansion, growing its total revenue by over 76% from ₹1,422.9 crore in FY23 to ₹2,514.7 crore in FY25. This high historical growth rate is driven by new offerings and industry expansion.
It has a proven path toward financial health, transitioning from a loss of ₹142.64 crore in FY23 to achieving a profit of ₹21.04 crore in the six months ended September 30, 2025. The Adjusted EBITDA margin simultaneously expanded from -7.18% to 2.86% over the same period.
The business operates efficiently with respect to its capital use. Its capital turnover ratio reached 3.96x in FY25, which is the highest ratio among 3PL peer companies in India for that fiscal year, demonstrating strong returns on its assets.
Operating leverage has reduced employee benefit expenses as a percentage of revenue from operations, declining from 11.43% (six months ended September 30, 2024) to 9.52% (six months ended September 30, 2025), even with an expanding permanent workforce of 4,472 employees.
Its growing, asset-light model leverages India’s largest crowdsourced last-mile delivery fleet. This workforce consisted of 2.06 lakh (205,864) average quarterly unique transacting delivery partners as of September 30, 2025, enabling high scalability and cost efficiency.
Risks
It faces high revenue concentration, as its largest client (Flipkart Internet) contributed 48.91% of the revenue from operations during the six months ended September 30, 2025, and consistently exceeded 48% in recent financial periods. The loss or reduction of business from this single client could severely impact revenue and profitability.
Operational stability is vulnerable as it has leased all its logistics facilities, covering over 35 square feet, as of September 30, 2025. Failure to renew critical leases or find suitable alternatives could materially disrupt its nationwide network and operations.
Despite recent profitability, it reported net losses totaling ₹142.64 crore in FY23 and ₹11.88 crore in FY24. Management anticipates future expenses will increase, posing a risk to maintaining its newly achieved profitability.
Managing COD (cash-on-delivery) orders poses risks like cash loss or short deposits by delivery partners, and potential security challenges. In the six months ended September 30, 2025, 10.15 crore orders were COD (34.46% of the total orders), highlighting ongoing exposure to cash handling risks.
The expenses related to lost shipments saw a substantial increase of 49% in FY25, amounting to ₹141.03 crore. This growing cost, driven by higher volumes and complex reverse shipments, increases its liability and operational costs.
Its dependence on a large network of 2.06 lakh crowdsourced delivery partners is vulnerable because it holds no exclusive arrangements with them. Disruptions, dissatisfaction, or the partners shifting to competitors could severely compromise service quality and financial performance.
The company maintains a high level of outstanding debt owed by clients. Trade receivables stood at ₹373.43 crore as of September 30, 2025, representing a significant 20.68% of revenue for the period, which pressures overall cash flow and operational liquidity.
How to Apply for Shadowfax IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Shadowfax IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of Shadowfax
Shadowfax Shareholding Pattern
| Promoters | 19.13% | |
| Name | Role | Stakeholding |
| Abhishek Bansal | Promoter | 10.76% |
| Vaibhav Khandelwal | Promoter | 8.37% |
| Public | 80.87% | |
| Name | Role | Stakeholding |
| Flipkart Internet Private Limited | Public | 14.84% |
| Eight Roads Investments Mauritius II | Public | 14.16% |
| NewQuest Asia Fund IV (Singapore) | Public | 14.09% |
| Nokia Growth Partners IV, L.P. | Public | 6.31% |
| International Finance Corporation | Public | 5.24% |
| Qualcomm Asia Pacific Pte. Ltd. | Public | 3.66% |
| Mirae Asset Late Stage Opportunities Fund | Public | 3.36% |
| Mirae Asset - Naver New Growth Fund I | Public | 1.93% |
| Mirae Asset - GS Retail New Growth Fund I | Public | 1.93% |
| Mirae Asset - Naver Asia Growth Investment | Public | 1.75% |
| Edelweiss Discovery Fund Series - I | Public | 1.53% |
| Kariba Holdings V Mauritius III | Public | 1.49% |
| Others | 10.58% |
About Shadowfax
Its target customers are enterprise clients across horizontal and non-horizontal e-commerce, quick commerce, food delivery, and on-demand mobility sectors, serving major companies like Flipkart and Zepto. Operating across India, it reached 14,758 pin codes as of September 30, 2025. The operational backbone consists of 4,299 total network touchpoints (first mile, middle mile, and last mile centers). These facilities utilize more than 35 lakh square feet of operational space. This extensive network is supported by a large crowdsourced fleet, comprising 2.06 lakh (205,864) Average Quarterly Unique Transacting Delivery Partners as of September 30, 2025.
The company manages a hybrid network that covers the flow of goods from start to finish. This supply chain moves parcels through first-mile pick-up, to mid-mile sorting and transport, and finally through the last-mile delivery to the customer. Its business model is "asset-light," utilizing leased facilities and a large crowdsourced delivery fleet for cost efficiency and scalability. For the future, it aims to grow its service portfolio in specialized areas like Banking, Financial Services, and Insurance (BFSI) parcel deliveries, and cross-border logistics. It also plans to invest heavily in Generative AI capabilities to refine resource allocation and demand forecasting.
For more details, visit here: www.shadowfax.in
Frequently Asked Questions of Shadowfax IPO
Can we invest in Shadowfax IPO?
What would be the listing gains on the Shadowfax IPO?
What is 'pre-apply' for Shadowfax IPO?
When is the Shadowfax IPO coming?
The exact IPO dates are not yet fixed. It plans to raise capital totaling up to ₹2,000 crore, split between a Fresh Issue and an Offer for Sale (up to ₹1,000 crore each). The final dates will be publicly announced at least two working days prior to opening.
Who are the promoters of Shadowfax?
The company's promoters are the entrepreneurial founders, Abhishek Bansal and Vaibhav Khandelwal. They have provided leadership since the company’s inception in 2015. Collectively, the promoters hold 19.13% of the pre-IPO equity share capital on a fully diluted basis.
Who are the competitors of Shadowfax?
Its key listed logistics industry peers used for direct comparison include Blue Dart Express Limited and Delhivery Limited. The competition is high, but the company rapidly expanded its e-commerce shipment market share from approximately 8% (FY22) to about 21% (Q1 FY26).
How does Shadowfax make money?
It earns money entirely by providing technology-led third-party logistics services, primarily in India. The express services division is the main revenue driver, contributing ₹1,238.73 crore or 68.60% of revenue for the six months ended September 30, 2025. Hyperlocal services generated another ₹359.35 crore.