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Flipkart-backed Shadowfax receives SEBI nod for IPO

21 October 2025 by
Flipkart-backed Shadowfax receives SEBI nod for IPO
Business Highlights

The full article details the approval received by the Flipkart-backed logistics company Shadowfax Technologies for its Initial Public Offering (IPO) from the Securities and Exchange Board of India (SEBI).

History

Shadowfax Technologies is a Bengaluru-based logistics service provider founded in 2015 by Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya. The company built a technology-driven platform focusing on last-mile delivery services across various segments, including:

  • E-commerce express parcels

  • Hyperlocal and Quick Commerce (often delivering within minutes)

  • Food and medicine delivery

The company utilizes a crowdsourced rider network and advanced technology, including AI-backed systems like SF Maps for route optimization, to achieve rapid delivery times. Shadowfax has established a robust pan-India presence, covering over 2,200 cities and more than 14,300 Pincodes, and it handles over two million packages daily.

Shadowfax has secured funding from a notable list of institutional investors, including Flipkart (a key backer), TPG, Eight Roads Ventures, Mirae Asset Ventures, and Nokia Growth Partners, raising a total of over $246 million to date.

IPO Announcement

Shadowfax received the official clearance, known as "issuing observations," from SEBI for its IPO during the week ending October 17, 2025. This approval allows the company to move forward with its public listing plans.

  • Filing Route: Shadowfax initially filed a confidential Draft Red Herring Prospectus (DRHP) with SEBI, a route that allows companies to gauge market interest and fine-tune their offer before public disclosure.

  • Target Size: The initial public offering is expected to be in the range of ₹2,000 crore to ₹2,500 crore (approximately $240 million to $300 million).

  • IPO Structure: The issue will comprise a mix of:

    • Fresh Issue of Equity Shares: Expected to be around ₹1,000–₹1,250 crore. The proceeds are intended primarily for expansion of delivery capacity, investment in the logistics network, and further technology investments, especially in quick-delivery offerings.

    • Offer for Sale (OFS): This portion involves existing shareholders, including investors like Flipkart and Eight Roads Ventures, selling a part of their stake.

  • Target Valuation: The company is reportedly aiming for a post-issue valuation of around ₹8,500 crore (approximately $1 billion).

Revenue Table

Shadowfax has demonstrated strong financial growth and a sharp reduction in losses in recent financial years, as reported in its filings:

Financial Year (FY)Operating Revenue (₹ Crore)Year-on-Year GrowthNet Loss (₹ Crore)Notes
FY22991Not Publicly Reported
FY231,41543%(142)
FY241,88533.2%(12)Achieved EBITDA profitability of ₹23 crore; Net loss cut by over 91%.

Export to Sheets

Note: Data represents approximations based on media reports of company filings.

The significant decline in net loss for FY24 while maintaining strong revenue growth indicates the company's focus on operational efficiency and improved margins, which has been a critical step toward its public market debut.

Conclusion

The SEBI nod for its IPO is a major milestone for Shadowfax, positioning it as one of the key new-age technology-driven companies, like PhysicsWallah, Lenskart, and Meesho, to enter the Indian public markets. The successful listing is anticipated to further fuel its growth in the competitive logistics sector, particularly in the high-growth segments of quick commerce and hyperlocal deliveries, which are expected to receive a significant portion of the primary capital raised.

Shadowfax’s strong financial turnaround in FY24, marked by achieving operational profitability and drastically reducing net losses, provides a favorable backdrop for its listing, offering an attractive proposition to potential investors interested in India's rapidly expanding e-commerce and logistics ecosystem.

Flipkart-backed Shadowfax receives SEBI nod for IPO
Business Highlights 21 October 2025
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