NewsIPOShadowfax Technologies Files ₹650.64 Crore IPO - Leading 3PL Company Shows Strong GrowthShadowfax Technologies Files ₹650.64 Crore IPO - Leading 3PL Company Shows Strong Growth
Shadowfax Technologies, a leading technology-enabled logistics company, has filed for a ₹650.64 crore IPO showcasing impressive financial turnaround with revenue CAGR of 32.60% and transition from losses to profitability. The company operates India's most extensive 3PL network covering 14,758 pin codes through 4,299 touchpoints and 205,864 delivery partners, though faces risks from high client concentration with top 5 clients contributing up to 84.96% of revenue.
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Shadowfax Technologies Limited, a technology-led third-party logistics (3PL) company, has filed for an Initial Public Offering (IPO) worth ₹650.64 crores. Founded in 2015, the company leverages technology to facilitate digital commerce across 14,758 Indian pin codes, serving enterprise clients including e-commerce, quick commerce, food marketplace, and mobility companies.
Strong Financial Performance
The company has demonstrated robust revenue growth over the past three fiscal years. Total revenue from operations increased significantly from ₹1,415.12 crores in FY2023 to ₹2,485.13 crores in FY2025, representing a compound annual growth rate of 32.60%.
| Financial Metric | FY2023 | FY2024 | FY2025 | Growth (FY23-25) |
|---|---|---|---|---|
| Revenue from Operations | ₹1,415.12 cr | ₹1,884.82 cr | ₹2,485.13 cr | 75.60% |
| Total Revenue | ₹1,422.89 cr | ₹1,896.48 cr | ₹2,514.66 cr | 76.74% |
| Profit Before Tax | (₹142.64 cr) | (₹11.88 cr) | ₹6.06 cr | - |
| Net Profit | (₹142.64 cr) | (₹11.88 cr) | ₹6.43 cr | - |
Notably, the company has moved from significant losses to profitability, reporting a profit before tax of ₹6.06 crores in FY2025 compared to losses of ₹11.88 crores in FY2024 and ₹142.64 crores in FY2023.
Extensive Network Infrastructure
Shadowfax operates one of India's most comprehensive logistics networks, positioning itself as the only 3PL of scale offering both end-to-end delivery for e-commerce and last-mile delivery for quick commerce and hyperlocal services. The company's operational scale is substantial:
| Operational Parameter | Scale |
|---|---|
| Pin Codes Served | 14,758 |
| Network Touchpoints | 4,299 |
| Operational Space | 3.50 million sq ft |
| Delivery Partners | 205,864 (Average Quarterly) |
| Cities Covered | 2,300+ |
| Permanent Employees | 4,472 |
The company claims to have access to India's largest crowdsourced last-mile delivery fleet among 3PL e-commerce players and is the largest 3PL provider in India for value-added services such as reverse pickups logistics by order volume for FY2025.
IPO Details and Fund Utilization
The IPO comprises entirely of fresh issue worth ₹650.64 crores, with no offer for sale component. The company plans to utilize the proceeds across four key areas:
| Fund Utilization | Amount (₹ Cr) | Purpose |
|---|---|---|
| Capital Expenditure | ₹423.43 | Network infrastructure, automated sortation centers, IT infrastructure |
| Lease Payments | ₹138.64 | New first mile centers, last-mile centers and sort centers |
| Branding & Marketing | ₹88.57 | Marketing campaigns, digital initiatives, delivery partner branding |
| General Corporate | Balance | Strategic acquisitions and expansion of product offerings |
Business Model and Market Position
Shadowfax provides comprehensive logistics solutions including express forward parcel deliveries, reverse pickups, prime deliveries, quick commerce, hyperlocal deliveries, and critical logistics services. The company operates through a nationwide network with gig-based delivery partners and a proprietary technology platform.
The company's revenue growth has been consistent, with quarterly performance showing strong momentum. In Q2 FY2025, revenue from operations reached ₹1,805.64 crores compared to ₹1,072.07 crores in Q2 FY2024, representing a growth of 67.10%.
Key Risk Factors and Financial Health
Despite strong growth, the company faces several material risks. Client concentration remains a significant concern, with the largest client contributing between 48.91% to 59.52% of revenue from operations across different periods. The top five clients contributed 74.11% to 84.96% of total revenue.
The company's balance sheet shows substantial growth, with total assets increasing from ₹442.73 crores in FY2023 to ₹1,259.26 crores in FY2025. Current assets grew from ₹320.85 crores to ₹892.26 crores during the same period, while total equity expanded from ₹176.32 crores to ₹660.43 crores.
| Balance Sheet Metrics | FY2023 | FY2025 | Growth |
|---|---|---|---|
| Total Assets | ₹442.73 cr | ₹1,259.26 cr | 184.45% |
| Current Assets | ₹320.85 cr | ₹892.26 cr | 178.06% |
| Total Equity | ₹176.32 cr | ₹660.43 cr | 274.57% |
Cash flow from operations turned positive in FY2024 at ₹131.55 crores after negative ₹72.83 crores in FY2023, though it moderated to ₹49.87 crores in FY2025. The company reported an adjusted EBITDA margin of 2.86% for the six months ended September 30, 2025, demonstrating its path toward sustainable profitability in India's rapidly growing logistics sector.
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