New IPO in Town? Flipkart-Backed Shadowfax Files Rs 2,500 Cr Draft via SEBI’s Confidential Route

Hyperlocal logistics firm Shadowfax has confidentially filed draft papers for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI), aiming to raise Rs 2,000–2,500 crore, according to an exclusive report by Reuters. The move comes as the company looks to capitalise on its strong growth and the rising investor appetite for tech-enabled logistics platforms.

For the uninitiated, under SEBI’s confidential route, startups are allowed to submit IPO documents privately. This mechanism enables companies to assess investor feedback and fine-tune offer details without making sensitive financial and strategic disclosures public prematurely.

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About the IPO

The public issue is expected to include a fresh equity raise of Rs 1,000–1,100 crore, while the remainder will be an Offer for Sale (OFS) by existing shareholders. The company had revealed that the proceeds fresh issue are earmarked for expansion in Shadowfax’s quick-commerce and hyperlocal delivery operations—segments that are increasingly contributing to the company’s top line.

Shadowfax has appointed ICICI Securities, JM Financial, and Morgan Stanley as lead book-running managers for the IPO. Apart from Flipkart and TPG, other key investors include Eight Roads Ventures (which holds about 25%), Mirae Asset, Qualcomm Ventures, and Nokia Growth Partners.

Financial Performance

Shadowfax posted a revenue of Rs 1,885 crore for FY24, up 33% from the previous year. The company turned operationally profitable, with EBITDA at Rs 23 crore, while its net loss shrank sharply to Rs 12 crore—a 92% year-on-year reduction. The company was valued between ₹5,500 and ₹6,000 crore during its last funding round in February, and it is expected to target a similar valuation at listing, Reuters reported.

About the company

Founded in 2015 by IIT Delhi alumni Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya, Shadowfax operates across more than 2,200 Indian cities and 14,300 PIN codes. It processes 2 to 2.5 million shipments daily and works with over 1.6 million active delivery partners monthly.

While e-commerce parcel deliveries currently account for about 75% of its revenue, the company is witnessing rapid growth in its quick-commerce and hyperlocal segments, which now contribute 25–30%. Executives expect this share to rise to 35–40% in the coming years.

Toeing other company's line

With its proposed public listing, Shoadowfax joins a growing list of Indian startups—including Swiggy, Groww, Shiprocket, and PhysicsWallah—that have chosen SEBI’s confidential filing route since its introduction in 2023.

(With inputs from Reuters)