Shadowfax Technologies Limited is witnessing positive market sentiment ahead of its initial public offering, with grey market indicators suggesting strong investor interest in the logistics services provider. The company's shares are currently trading at a premium in the unofficial market, reflecting optimism about the upcoming public issue.

IPO Structure and Pricing Details

The public offering presents a comprehensive funding structure designed to support the company's growth initiatives:

The grey market is currently pricing Shadowfax shares at approximately ₹16.00 above the upper price band, suggesting an expected listing price around ₹140.00 per share. This represents a potential upside of roughly 13% over the issue price, indicating positive market expectations.

Financial Performance and Turnaround

Shadowfax has demonstrated significant financial improvement, marking a notable turnaround in its profitability trajectory:

The company's revenue growth has been robust, driven by increasing volumes from e-commerce, direct-to-consumer brands, and quick commerce players. The improving EBITDA margins reflect operational efficiency gains and better scale economics.

Business Operations and Network Infrastructure

Shadowfax operates an extensive nationwide logistics network that positions it well in India's growing e-commerce and quick commerce sectors:

• Geographic Coverage: Over 14,700 pin codes across India
• Infrastructure: More than 4,200 touchpoints including first-mile, last-mile, and sort centres
• Business Model: Asset-light approach with leased facilities and owned automation
• Service Segments: Comprehensive logistics solutions across multiple delivery categories

The company's asset-light model has enabled rapid scaling while maintaining controlled capital intensity, supporting its expansion across diverse market segments.

Client Portfolio and Market Position

Shadowfax serves a diversified base of prominent clients across multiple sectors, providing stability and growth opportunities:

Major Clients Include:

• E-commerce platforms: Flipkart, Meesho, Myntra, Nykaa
• Food delivery services: Swiggy, Zomato
• Quick commerce: Zepto, Blinkit

This diversified client portfolio provides exposure across e-commerce, food delivery, and hyperlocal logistics segments, reducing concentration risk while capitalizing on India's digital commerce growth.

Fund Utilization and Growth Strategy

The IPO proceeds from the fresh issue are earmarked for strategic initiatives expected to drive medium-term growth:

• Network expansion to increase geographic coverage
• Lease payments for new operational centres
• Brand-building activities to strengthen market position
• Supporting scale efficiencies across operations

These investments are designed to enhance the company's competitive position in the rapidly evolving logistics sector while maintaining its asset-light operational approach.

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.