Flipkart-backed Shadowfax Gears Up for IPO, Files Updated DRHP with Sebi

Logistics platform Shadowfax is reportedly preparing for a public listing by the end of this year after filing an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (Sebi) on Saturday. The Flipkart-backed company plans to raise up to ₹2,000 crore through its initial public offering (IPO).

According to the draft prospectus, co-founders Abhishek Bansal and Vaibhav Khandelwal hold about 10.76% and 8.37% stakes respectively, while Flipkart Internet owns the largest share at 14.84%, reported Inc42.

The funds will be raised through a mix of primary and secondary issues — up to ₹1,000 crore via a fresh equity issue and another ₹1,000 crore through an offer-for-sale (OFS). Flipkart is expected to sell shares worth around ₹237 crore, Eight Roads Ventures about ₹197 crore, TPG (through NewQuest Asia Fund IV) ₹150 crore, and Nokia Growth Partners approximately ₹100.8 crore, among others.

Of the net proceeds, ₹423.4 crore will be allocated for expanding network infrastructure, ₹138.6 crore for lease payments on new logistics centres, and ₹88.6 crore for marketing and brand-building. The remainder will go towards acquisitions and general corporate purposes.

The company may also pursue a pre-IPO placement before filing its final prospectus or red herring prospectus (RHP), capped at 20% of the fresh issue size.

The logistics firm first filed its IPO documents through a confidential route in July. In late October, it received approval from the market regulator for the listing. According to The Economic Times, the company is eyeing a December or January listing.

Shadowfax reported operating revenue of ₹1,805 crore in the first half of the current financial year, marking a 68% rise from the same period last year. Net profit surged 114% to ₹21 crore. For FY25, revenue grew 32% year-on-year to ₹2,485 crore, compared to ₹1,884 crore in FY24, while the company swung to a net profit of ₹6 crore from a loss of ₹11.8 crore in the previous year.

E-commerce operations accounted for roughly 70% of its total business, expanding by 55% in FY25. The remaining share came from the fast-growing quick commerce segment, which surged 90% year-on-year. In the logistics space, Shadowfax primarily competes with Mumbai-listed Delhivery but, unlike its rival, does not operate in the business-to-business segment.