Shadowfax Technologies is set to debut on the public markets with its ₹1,907 crore initial public offering opening on January 20, 2025. The third-party logistics company, which has emerged as India's fastest-growing 3PL player, offers investors exposure to the expanding e-commerce and quick commerce logistics sector at a relatively modest valuation compared to listed peer Delhivery.

IPO Structure and Fund Utilization

The public offering is priced at ₹118-124 per share, comprising a fresh issue of ₹1,000 crore and an offer-for-sale of ₹907 crore by existing investors. Notable selling shareholders include Flipkart (₹400 crore) and Qualcomm (₹65.40 crore). At the upper price band, Shadowfax's implied market capitalization stands at ₹7,169 crore, significantly lower than Delhivery's ₹30,049 crore.

Business Model and Market Position

Shadowfax operates a technology-led 3PL platform offering end-to-end e-commerce logistics and last-mile hyperlocal delivery services. The company is uniquely positioned as the only 3PL player of scale in India to combine both capabilities within a single network. Its client roster includes major platforms such as Meesho, Flipkart, Zomato, and Magicpin, with most customers utilizing multiple service lines to drive strong retention and wallet share.

The company's market share in India's e-commerce shipments has grown dramatically from 8% in FY22 to 23% as of September 30, 2025. Shadowfax has established itself as the largest 3PL player in reverse pickup and same-day delivery by order volume, supported by the country's largest crowdsourced last-mile delivery fleet among e-commerce logistics players.

Financial Performance and Growth Metrics

Shadowfax has demonstrated robust revenue growth, with total revenue expanding from ₹1,415 crore in FY23 to ₹2,485 crore in FY25. The momentum continued into FY26, with H1FY26 revenue reaching ₹1,806 crore, indicating a potential full-year revenue exceeding ₹3,500 crore at the current run rate.

The company has achieved a significant operational turnaround, moving from negative EBITDA margins of 7.18% in FY23 to positive 1.96% in FY25, and further improving to 2.86% in H1FY26. This performance already exceeds Delhivery's 1.65% margin, indicating improving efficiency at current scale.

Operational Scale and Infrastructure

As of September 2025, Shadowfax operated with 205,864 average quarterly unique transacting delivery partners across more than 2,300 cities and 14,785 pin codes. The company's unified logistics network comprises 90 first-mile and return-to-seller centres, 53 sortation centres, and 4,156 last-mile centres. Order volumes have grown substantially from 259 million in FY23 to 437 million in FY25, and further to 294 million in H1FY26 compared to 196 million in H1FY25.

Client Concentration Risk

Despite strong operational metrics, Shadowfax faces significant client concentration risks. The company's largest customer accounted for 48% of total operating revenue in FY25, while the top five clients contributed 75% of revenue and the top ten accounted for 86%. Group company Flipkart alone represented 12% of revenue during the year.

This concentration level poses risks to both revenue stability and pricing power, as demonstrated by similar challenges faced by Ecom Express when Meesho launched its in-house logistics arm, Valmo, leading to sharp volume declines and mounting losses.

Valuation and Investment Considerations

At the upper price band, Shadowfax trades at a price-to-sales multiple of 2.20 times, representing a discount to Delhivery's 3.20 times valuation. This discount reflects the trade-off between Shadowfax's faster revenue growth and early-stage profitability against the inherent risks associated with high client concentration. Investors must evaluate whether the valuation adequately compensates for the exposure to potential customer losses that could significantly impact the company's financial performance.

Shadowfax Technologies Limited is preparing to launch its ₹1,907 crore initial public offering on January 20, 2026, marking a significant milestone for the Bengaluru-based logistics and last-mile delivery company. The three-day subscription window will remain open until January 22, 2026, with shares expected to list on both BSE and NSE around January 28, 2026.

IPO Structure and Pricing Details

The public offering consists of two main components designed to balance growth funding with existing shareholder liquidity. The company has structured the issue to support both immediate expansion needs and provide exit opportunities for current investors.

Grey Market Performance and Investor Sentiment

As of January 19, 2026, Shadowfax Technologies shares are trading at a grey market premium of ₹10 per share, representing an 8% premium over the upper price band of ₹124. This suggests a potential listing price of approximately ₹134 per share, though the premium has moderated from an earlier 12% level. The grey market activity reflects moderate investor interest ahead of the official listing, though these unofficial indicators can fluctuate based on market conditions.

Fund Utilization Strategy

The company has outlined specific deployment plans for the ₹1,000 crore fresh issue proceeds, focusing on infrastructure expansion and market presence enhancement.

The capital expenditure allocation will strengthen the company's logistics network infrastructure, while lease payments will support the establishment of first-mile centers, last-mile centers, and sortation centers to improve delivery efficiency.

Company Operations and Market Presence

Founded in 2015, Shadowfax Technologies Limited has established itself as a prominent player in India's logistics ecosystem. The company operates across more than 18,000 pin codes spanning over 2,500 cities, with the capability to process over two million packages daily. The firm specializes in rapid delivery services, including same-day and next-day delivery, doorstep exchange services, and quick-commerce solutions with delivery timelines as short as 10 minutes.

Financial Performance Highlights

Shadowfax demonstrated robust financial growth in FY25, achieving significant improvements across key performance metrics. The company's operational efficiency gains translated into improved profitability and sustainable business momentum.

The company's total income rose 32% to ₹2,515 crore in FY25, while EBITDA surged 410% to ₹56 crore. Most notably, Shadowfax achieved profitability with a net profit of ₹6 crore in FY25, demonstrating improved operational efficiency and business scalability. The IPO is being managed by ICICI Securities Limited, Morgan Stanley India Company Private Limited, and JM Financial Limited as book-running lead managers, with KFin Technologies Ltd serving as the registrar.