Logistics services provider Shadowfax is set to launch its ₹1,900 crore initial public offering next week, targeting a conservative valuation of ₹7,400 crore. The company is expected to announce the price band this week, positioning itself strategically to attract long-term institutional investors through measured pricing.

IPO Structure and Investor Participation

The public offering comprises two key components with significant participation from existing stakeholders:

The offer for sale includes participation from prominent investors including Flipkart Internet, Eight Roads Investments Mauritius II Ltd, NewQuest Asia Fund IV (Singapore) Pte. Ltd, Nokia Growth Partners IV, L.P, International Finance Corporation, Mirae Asset, Qualcomm Asia Pacific Pte. Ltd, and Snapdeal founders Kunal Bahl and Rohit Kumar Bansal.

Fund Utilization and Strategic Initiatives

Shadowfax plans to deploy proceeds from the fresh issue across multiple growth areas. The company will focus on enhancing network infrastructure capacity, funding lease payments for new first mile, last mile, and sort centres. Additional allocations include branding and marketing initiatives, potential inorganic acquisitions, and general corporate purposes.

Strong Financial Performance and Market Position

The company demonstrated robust financial growth with impressive revenue expansion:

Shadowfax has significantly strengthened its market position, with express parcel market share rising to 21% in Q1 FY26 from 8% in FY22, according to Redseer data. The company operates across 14,758 Indian pincodes and serves diverse enterprise clients including horizontal and non-horizontal e-commerce, quick commerce, food marketplaces, and on-demand mobility companies.

Business Segments and Service Portfolio

The company's revenue streams are well-diversified across logistics segments:

• E-commerce express parcel segment: 70% of total business • Hyperlocal and quick commerce logistics: 20% of revenue • Value-added services: Remaining portion

Shadowfax offers comprehensive logistics solutions including express forward parcel deliveries, reverse pickups, on-demand hyperlocal services, and critical logistics solutions.

Regulatory Approval and Market Strategy

The company filed draft papers in June through a confidential pre-filing route with SEBI and received approval in October. This approach allows companies to withhold public disclosure of IPO details until later stages, providing greater flexibility in IPO planning. The updated draft red herring prospectus has been approved, clearing the path for the public offering launch.

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.

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.

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.