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Industry : Transport Services

Shadowfax Technologies Limited View all IPOs

Price Band

Rs 118 – Rs 124

Shadowfax Technologies Limited is going public with a fresh issue and an offer for sale. The issue opens on 20th January 2026.

MOJO CALL

Why

MOJO CALL

Avoid

Neutral

Market Leadership and Exceptional Growth Trajectory

The company has established itself as India's fastest-growing third-party logistics company of scale, demonstrating remarkable market expansion. The company's market share in the e-commerce segment shipment surged from approximately 8% in FY2022 to 23% by September 2025, representing a threefold increase in just three years. The company holds leadership positions in critical value-added services including reverse pickup shipments and quick commerce solutions, processing 436.36 million orders in FY2025 with a robust CAGR of 29.77% from FY2023.

India's Largest Gig-Based Last-Mile Delivery Infrastructure

The company operates the largest crowdsourced last-mile delivery fleet among 3PL e-commerce players in India, with 205,864 Average Quarterly Unique Transacting Delivery Partners as of September 2025 across over 2,300 cities. This extensive network provides significant competitive advantages through a variable cost structure that ensures costs remain proportional to delivery volumes, maintaining lower fixed costs and better value propositions for clients. The proprietary Frodo platform facilitates seamless delivery partner lifecycle management with AI/ML-powered order assignments, gamified payouts through surge pricing and performance incentives, and an impressive organic growth mechanism where 37.43% of monthly delivery partner onboarding in FY2025 came through referrals.

Severe Client Concentration Risk

Shadowfax faces extreme customer concentration risk that threatens business stability and negotiating power. The company's largest client alone contributed a staggering 59.52%, 59.23%, 48.00%, and 48.91% of revenue from operations for FY2023, FY2024, FY2025, and H1 FY2026 respectively, indicating that nearly half of the revenues depend on a single relationship. This over-dependence creates multiple vulnerabilities including limited pricing power, vulnerability to client-specific business challenges, potential for sudden revenue collapse if the relationship deteriorates, and reduced ability to negotiate favorable terms.

Valuations

Based on the TTM financials, the company is seeking a market-to-sales valuation of 2.22x. Supported by strong growth relative to its peers, reflected in rising market share in the e-commerce and express delivery segments, the company has achieved breakeven and has transitioned to profitable growth, albeit with modest profit levels. In view of these factors, we recommend subscribing to the issue.

Issue Details

Issue Opens	20th January 2026
Issue Closes	22nd January 2026
Price Band	Rs 118 – Rs 124
Issue size (Upper Band)	Rs. 1907 crore
Issue Type	FRESH ISSUE & OFFER FOR SALE
Market cap (based on upper band)	Rs 7168.85 crore
Sales- March 2025 (Rs./Crs)	Rs. 2485.13 crore
Net Profit - March 2025 (Rs./Crs)	Rs. 6.43 crore
Industry	Transport Services
Promoters	ABHISHEK BANSAL AND VAIBHAV KHANDELWAL
Lead Manager	ICICI Securities, Morgan Stanley and JM Financial

Objective of the Issue

Details

Objectives of the Issue – Fresh Issue: Rs 1,000 crore & Offer for Sale: Rs 907 crore

1. Funding of capital expenditure requirements of the company in relation to the network infrastructure – Rs 423.43 crore

2. Funding of lease payments for new first mile centers, last mile centers and sort centers – Rs 138.64 crore

3. Funding of branding, marketing and communication costs – Rs 88.57 crore

4. Unidentified inorganic acquisitions and general corporate purposes – Rs 349.36 crore

List of Shareholders Selling Their Stake

Name	Type	Value of Shares (in Rs)	% of OFS
Flipkart Internet	Institutional Investor	400,00,00,000	44%
Eight Roads Investments Mauritius II	Institutional Investor	197,00,00,000	22%
International Finance Corporation	Institutional Investor	65,54,90,000	7%
Qualcomm Asia Pacific	Institutional Investor	65,42,00,000	7%
Nokia Growth Partners IV	Institutional Investor	59,30,00,000	7%
NewQuest Asia Fund IV (Singapore)	Institutional Investor	45,00,00,000	5%
Mirae Asset - Naver New Growth Fund I	Institutional Investor	37,50,00,000	4%
Mirae Asset - GS Retail New Growth Fund I	Institutional Investor	37,50,00,000	4%

Business Operations

About Company

Shadowfax Technologies Limited is a new-age, technology-led third-party logistics (3PL) company that leverages advanced technology to facilitate digital commerce across India. With a service network covering 14,758 pin codes as of September 2025, Shadowfax serves diverse enterprise clients including e-commerce, quick commerce, food marketplace, and on-demand mobility companies.

The company offers comprehensive logistics services including express parcel deliveries, reverse pickups, hand-in-hand exchanges, prime deliveries, quick commerce, hyperlocal deliveries, and critical logistics solutions. Shadowfax is India's fastest-growing 3PL company of scale, expanding its e-commerce market share from approximately 8% in FY2022 to 23% by September 2025.

The company leads in reverse pickup shipments and quick commerce solutions. Its infrastructure comprises 4,299 touchpoints, including 53 sort centers spanning over 1.80 million square feet, supported by India's largest crowdsourced last-mile delivery fleet with over 205,000 unique transacting delivery partners as of September 2025.

Segment Revenue Breakup

Revenue Breakdown by Segment:
Segment	H1 FY2026	FY2025	FY2024
Express	68.6%	69%	79.3%
Hyperlocal	19.9%	21%	13.5%
Other Logistics Services	11.5%	10%	7.2%

Financials

Financial Overview

The company's revenue grew at a CAGR of over 32% between FY2023 and FY2025, with revenues of Rs 2,485 crore recorded for FY2025. For H1 FY2026, the company recorded revenues of Rs 1,806 crore.

For FY2025, the company's Operating Profit (EBITDA) stood at Rs 48.67 crore, significantly up from Rs 19.92 crore and operating losses of Rs 101.65 crore recorded in FY2024 and FY2023, respectively. For H1 FY2026, EBITDA stood at Rs 51.56 crore, with margins of 2.86%.

Consequently, the company recorded profits of Rs 6.43 crore in FY2025, significantly improving from losses of Rs 11.88 crore and Rs 142.64 crore recorded in FY2024 and FY2023, respectively. For H1 FY2026, the company recorded profits of Rs 21.04 crore, with margins of 1.17%.

The company has managed to successfully generate positive cashflow from operations (CFO) for the past 2 years. The company generated a positive CFO of Rs 49.9 crore and Rs 131.6 crore for FY2025 and FY2024, respectively. Similarly, for the half year ended September 2025, the company has generated operating cashflows of Rs 140.9 crore.

As of 30th September 2025, the company recorded negligible borrowings, whereas lease liabilities stood at Rs 147 crore.

Financial Performance (Rs/crore)

Rs./Crs	H1 FY2026	FY2025	FY2024
Sales	1805.64	2485.13	1884.82
Net Profit	21.04	6.43	-11.88