Flipkart backed Shadowfax files confidential DRHP for IPO

Shadowfax Technologies, a leading logistics and delivery service provider based in Bangalore, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The total issue size is expected to be in the range of ₹2,000 crore to ₹2,500 crore. As per the DRHP, the IPO is likely to be a combination of a fresh issue of shares and an offer for sale, allowing the company to raise new capital while also providing an exit opportunity for existing shareholders.

Shadowfax’s valuation is estimated between ₹5,000 crore and ₹8,000 crore.  The company derives the bulk of its revenue from the e-commerce segment, which contributes approximately 75% of its overall business. The remaining 25% of revenue is attributed to quick commerce and delivery services, underscoring the company’s diversified presence within the logistics and fulfilment ecosystem.

In FY24, the company achieved EBITDA profitability, posting an operating profit of ₹23 crore. This reflects a notable improvement in operational efficiency and cost management. Furthermore, the company reported a 33% increase in operating revenue, which rose to ₹1,884 crore, indicating strong business growth during the fiscal year. Notably, Shadowfax also managed to narrow its net loss by 92%, bringing it down to just ₹12 crore, showcasing a significant turnaround in its financial health and progress towards sustained profitability.