Shadowfax IPO to Launch Next Week Targeting Rs 7,400 Crore Valuation
Shadowfax is launching its Rs 1,900 crore IPO next week, targeting Rs 7,400 crore valuation with conservative pricing to attract institutional investors. The offering includes Rs 1,000 crore fresh issue and Rs 900 crore OFS by existing shareholders including Flipkart and other marquee investors. The company showed strong growth with Rs 1,800 crore revenue in H1 FY26 (68% YoY growth) and increased market share to 21% in express parcel segment.
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Logistics services provider Shadowfax is preparing to launch its Rs 1,900 crore initial public offering next week, targeting a valuation of Rs 7,400 crore. The company is expected to announce the price band for its maiden public offering this week, marking a significant milestone for the e-commerce logistics sector.
IPO Structure and Valuation Strategy
Shadowfax is targeting a post-market valuation of approximately Rs 7,400 crore, which represents a more conservative approach compared to previous estimates of Rs 8,500 crore. This strategic pricing is aimed at attracting long-term institutional investors to the offering.
| Component | Amount |
|---|---|
| Fresh Issue | Rs 1,000 crore |
| Offer for Sale (OFS) | Rs 900 crore |
| Total IPO Size | Rs 1,900 crore |
| Target Valuation | Rs 7,400 crore |
Existing Shareholders and OFS Participants
As part of the offer for sale, several prominent investors will offload their shares. The selling shareholders include Flipkart Internet, Eight Roads Investments Mauritius II, NewQuest Asia Fund IV (Singapore) Pte, Nokia Growth Partners IV LP, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific Pte, and Snapdeal founders Kunal Bahl and Rohit Kumar Bansal.
Fund Utilization and Business Expansion
The company plans to utilize proceeds from the fresh issue towards multiple growth initiatives:
- Enhancing network infrastructure capacity
- Funding lease payments for new first mile, last mile, and sort centres
- Branding, marketing, and communication initiatives
- Unidentified inorganic acquisitions
- General corporate purposes
Strong Financial Performance and Market Position
Shadowfax has demonstrated robust financial growth in recent periods. The company reported revenue of approximately Rs 1,800 crore for the first half of FY26, representing a substantial 68% year-on-year increase. Its total revenue stood at Rs 2,485 crore in FY25.
| Financial Metric | H1 FY26 | FY25 | Growth |
|---|---|---|---|
| Revenue | Rs 1,800 crore | - | 68% YoY |
| Annual Revenue | - | Rs 2,485 crore | - |
The e-commerce express parcel segment serves as the major revenue contributor, accounting for approximately 70% of the company's business. Additionally, around 20% of revenue comes from hyperlocal and quick commerce logistics operations.
Market Leadership and Network Reach
Shadowfax has established itself as India's leading logistics service provider for e-commerce express parcel and value-added services. The company operates an extensive service network encompassing 14,758 Indian pincodes as of September 2025. Its express parcel market share has grown significantly to about 21% in Q1 FY26, up sharply from around 8% in FY22, according to Redseer data.
The company serves a diverse range of enterprise clients, including horizontal and non-horizontal e-commerce platforms, quick commerce companies, food marketplaces, and on-demand mobility firms. Its service offerings include express forward parcel deliveries, reverse pickups, on-demand hyperlocal and critical logistics solutions.
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