Shadowfax Technologies Limited, India's fastest-growing third-party logistics (3PL) company, is set to launch its initial public offering worth ₹650.64 crores on January 20, 2026. The Bengaluru-based technology-led logistics platform has established itself as the largest 3PL provider in India for value-added services, serving enterprise clients across e-commerce, quick commerce, food marketplace, and mobility sectors.

Company Overview and Market Position

Shadowfax Technologies operates as a comprehensive logistics solutions provider offering express forward parcel deliveries, reverse pickups, prime deliveries, quick commerce services, and hyperlocal deliveries. The company has built an extensive nationwide network serving 14,758 Indian pin codes as of September 30, 2025, through 4,299+ touchpoints across first and last mile centers, franchisee partners, and sort centers.

The company's competitive advantage lies in being the only 3PL of scale offering both end-to-end e-commerce delivery and last-mile delivery for quick commerce. It operates India's largest crowdsourced last-mile delivery fleet with 205,864 Average Quarterly Unique Transacting Delivery Partners across 2,300+ cities.

Financial Performance and Growth Trajectory

Shadowfax has demonstrated strong financial performance with consistent revenue growth and a successful transition to profitability:

The company's profitability metrics show a remarkable turnaround from losses to positive margins:

The company achieved Adjusted EBITDA of ₹51.57 crores with a 2.86% margin for the six months ended September 30, 2025, demonstrating operational efficiency improvements.

IPO Details and Fund Utilization

The IPO comprises entirely of fresh issue proceeds totaling ₹650.64 crores, with the following timeline:

The company plans to utilize the proceeds for strategic expansion initiatives:

• Network Infrastructure Capital Expenditure (₹423.43 cr): Investment in automated sortation centers with cross-belt sorters, IT infrastructure replenishment, and asset procurement to deepen network infrastructure
• Lease Payments for New Facilities (₹138.64 cr): Establishment of new first mile centers, last-mile centers, and sort centers for network expansion
• Branding and Marketing (₹88.57 cr): Targeted marketing campaigns, brand-building initiatives, and digital marketing efforts
• General Corporate Purposes and Acquisitions: Strategic inorganic acquisitions and general corporate purposes

Operational Scale and Infrastructure

Shadowfax operates with significant scale across multiple operational parameters as of September 30, 2025:

The company's market share expansion from approximately 8% in FY2022 to approximately 21% in Q1 FY2026 demonstrates its rapid growth in the Indian logistics sector.

Risk Considerations

Investors should consider several key risks associated with the business model. The company faces client concentration risk, with its largest client contributing 48.91%-59.52% of revenue across periods, while the top 5 clients contribute 74.11%-84.96% of revenue. Additionally, the business depends heavily on its delivery partner network without exclusive arrangements, and all logistics facilities totaling 3.50+ million square feet are leased rather than owned.

The company also handles significant cash-on-delivery operations, with 34.46%-47.00% of orders being COD representing ₹2,997-4,603 crores in annual order values, presenting operational and cash management challenges.

Investment Outlook

Shadowfax Technologies presents an investment opportunity in India's rapidly expanding digital commerce ecosystem. The company has demonstrated strong execution capabilities with consistent revenue growth, successful transition to profitability, and market share expansion. Its position as the largest 3PL provider for value-added services, combined with access to India's largest crowdsourced delivery network, provides competitive advantages in the logistics sector. However, investors should carefully evaluate the concentration risks and operational dependencies inherent in the business model.

Shadowfax Technologies Limited, India's fastest growing technology-led third-party logistics (3PL) company, is set to launch its initial public offering worth ₹650.64 crores on January 20, 2026. The company facilitates digital commerce across 14,758 Indian pin codes and serves enterprise clients including e-commerce, quick commerce, food marketplace, and on-demand mobility companies through its comprehensive logistics network.

Strong Financial Performance and Growth Trajectory

Shadowfax Technologies has demonstrated remarkable growth, expanding its e-commerce shipment market share from approximately 8.00% in FY2022 to approximately 21.00% in Q1 FY2026. The company's financial performance shows consistent revenue growth with improving profitability metrics.

The company achieved a revenue CAGR of 32.66% between FY2023 and FY2025, turning profitable in FY2025 with a net profit of ₹6.43 crores after incurring losses in previous years.

IPO Details and Timeline

The public offering comprises entirely of fresh issue shares worth ₹650.64 crores, with no offer for sale component. The subscription window opens on January 20, 2026, and closes on January 22, 2026, followed by allotment on January 23, 2026, and listing on January 28, 2026.

Use of IPO Proceeds

The company plans to utilize the IPO proceeds across four key areas to strengthen its market position and expand operations.

Market Position and Operational Scale

Shadowfax Technologies operates as the only 3PL company of scale in India offering both end-to-end e-commerce delivery and last-mile delivery for quick commerce. The company maintains the largest 3PL provider position in India for value-added services by order volume as of FY2025.

Key Operational Metrics (as of September 30, 2025):

• Pin codes served: 14,758
• Touchpoints: 4,299
• Operational space: 3.50 million square feet
• Average quarterly unique transacting delivery partners: 205,864
• Cities covered: 2,300+
• Total employees: 4,472 permanent + 17,182 contractual

The company provides express forward parcel deliveries, reverse pickups, hand-in-hand exchange deliveries, prime deliveries, quick commerce, and hyperlocal services through its extensive network infrastructure.

Risk Factors and Investment Considerations

Despite strong growth metrics, the company faces several operational and financial risks. Client concentration remains a significant concern, with the largest client contributing 48.91% to 59.52% of revenue across different periods, while the top five clients contributed 74.11% to 84.96% of total revenue.

Key Risk Areas:

• High dependence on crowdsourced delivery partners without exclusive arrangements
• Complete reliance on leased facilities across 3.50 million square feet of operational space
• Heavy dependence on technology infrastructure requiring annual capex of ₹61.18 to ₹228.18 million
• Exposure to e-commerce industry fluctuations, with 68.60% to 91.66% revenue from express and hyperlocal services

The company's balance sheet shows significant growth in total assets from ₹442.73 crores in FY2023 to ₹1,259.26 crores in FY2025, reflecting substantial business expansion and infrastructure investments during this period.