This Flipkart-backed company wants to raise ₹2,500cr via IPO
What's the story
Shadowfax Technologies, a prominent Indian logistics and delivery service provider, has filed a confidential draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is looking to raise between ₹2,000 crore and ₹2,500 crore via an initial public offering (IPO). It is likely to be valued at nearly ₹8,500 crore.
Fund allocation
IPO details and use of proceeds
The upcoming IPO will be a book-built public issue with a mix of fresh equity shares and an offer for sale (OFS) component. The company intends to use the funds from this fresh issue for capacity expansion, growth acceleration, and further investments in its subsidiaries. Shadowfax Technologies is backed by top investors like Flipkart, TPG, Eight Roads Ventures, Mirae Asset Ventures, and Nokia Growth Funds.
Operational details
Logistics service provider with a pan-India presence
Shadowfax is a logistics service provider for e-commerce, express parcel, as well as other value-added services. The company has a distribution network spanning over 2,200 cities and covering over 14,300 PIN codes across India. It has around 1.40 lakh quarterly delivery partners on its platform.
Financial overview
E-commerce is its major revenue contributor
E-commerce segment is the major revenue contributor for Shadowfax Technologies, accounting for roughly 75% of its business. The rest comes from quick commerce and hyperlocal deliveries. In its last fundraising round in February 2023, the firm had raised primary and secondary capital at an approximate valuation of around ₹6,000 crore.