Flipkart-backed Shadowfax to launch ₹1,900cr IPO next week
What's the story
Shadowfax, a leading logistics services provider backed by Flipkart, is gearing up to launch its initial public offering (IPO) next week. The company is eyeing a post-money valuation of around ₹7,400 crore. This is lower than the earlier target of ₹8,500-9,000 crore. The Bengaluru-based firm has also trimmed its offering size to ₹1,900 crore from the previously announced ₹2,000 crore in November's updated draft red herring prospectus (UDRHP).
Offering details
Shadowfax's IPO strategy and investor participation
Shadowfax's IPO will be a mix of a fresh issue worth ₹1,000 crore and an offer for sale (OFS) component of ₹900 crore. The OFS part will see investors such as Flipkart, TPG NewQuest, Eight Roads, International Finance Corporation and Mirae Asset sell their shares during the IPO. This strategic move is part of Shadowfax's plan to attract long-term institutional investors with a more conservative pricing approach.
Fund utilization
Shadowfax's IPO proceeds allocation and future plans
The company intends to use the proceeds from its fresh issue for network infrastructure expansion, lease payments for new first mile, last mile and sort centers. The funds will also be used for branding, marketing communication initiatives, unidentified inorganic acquisitions, and general corporate purposes. This comes after the company's updated draft red herring prospectus (UDRHP) was approved.
Revenue growth
Shadowfax's financial performance and market position
For the first half of FY26, Shadowfax reported a revenue of around ₹1,800 crore, a whopping 68% year-on-year increase. The company's total revenue stood at ₹2,485 crore in FY25. The e-commerce express parcel segment is the major revenue contributor to Shadowfax's business model. It accounts for about 70% of the company's operations with hyperlocasl and quick commerce logistics contributing around 20%.