Shadowfax to Open ₹1,900 Cr IPO Next Week, Eyes ₹7,400 Cr Valuation

Shadowfax, the Bengaluru-based logistics and last-mile delivery startup, is set to open its initial public offering next week, targeting a post-listing valuation of about ₹7,400 crore and an issue size of roughly ₹1,900 crore, people familiar with the matter told PTI. The IPO will comprise a ₹1,000 crore fresh issue and an offer-for-sale (OFS) of ₹900 crore by existing shareholders. The company is expected to announce the price band later this week.

The updated draft red herring prospectus, filed after a confidential pre-filing with Sebi in June and cleared in October, slightly trims the earlier planned size and adopts a more conservative pricing approach. Advisers say the strategy is aimed at attracting long-term institutional investors amid cautious market conditions.

Use of Proceeds

Shadowfax plans to use a majority of the fresh proceeds to expand its physical network, including first-mile, last-mile and sortation centres, with over half of the capital earmarked for infrastructure and lease-related costs. The remaining funds will be deployed towards brand marketing, selective acquisitions and general corporate purposes, as the company looks to scale its hyperlocal and quick-commerce operations, which it sees as its main growth driver after listing.

The OFS will see partial exits by several early and marquee investors, including Flipkart, Eight Roads Ventures, NewQuest Asia Fund, Nokia Growth Partners, IFC, Mirae Asset, Qualcomm Asia Pacific, and Snapdeal founders Kunal Bahl and Rohit Bansal. The sell-down reflects a typical pre-IPO liquidity event for early backers as the company matures.

Shadowfax Financials

Financially, Shadowfax has shown strong top-line growth and early signs of profitability. In FY25, operating revenue rose 32% year-on-year to ₹2,485 crore, with a net profit of ₹6 crore, compared with a loss the previous year. In the first half of FY26, revenue jumped 68% year-on-year to ₹1,800 crore, while profit rose to ₹21 crore, indicating improving unit economics as volumes scale.

Express parcel delivery remains the company’s largest business, contributing around 60–70% of revenue, with major clients including Flipkart, Meesho and Nykaa. However, management is increasingly betting on hyperlocal and quick-commerce delivery as the key growth engine. Hyperlocal revenues rose 83% year-on-year to ₹359 crore in H1 FY26, and the company says it now handles close to 50 lakh quick-commerce orders a day.