Shadowfax’s first day on the stock market was a mixed bag: shares slipped nearly a tenth from the offer price, but the company still raised a substantial sum through its IPO.
At a Glance
- Shares fell 9% from ₹124 to ₹112.60 on debut.
- The company raised ₹19.07 billion (about $208.24 million) in its IPO.
- Roughly 74% of revenue comes from a handful of large e-commerce partners.
- Why it matters: The debut highlights investor caution around client concentration in India’s growing logistics sector.
Market Debut and Share Performance
Shadowfax’s listing on the Bombay Stock Exchange saw its stock open at ₹124 per share, only to close at ₹112.60-about a 9% drop from the offer price. The shares were priced in a band of ₹118-124 and were subscribed nearly three times over. At market close, the company was valued at roughly ₹64.7 billion (about $706.58 million), close to its last private valuation of around ₹60 billion (about $655.01 million) in early 2025.
Company Background and Client Concentration
Founded in 2015, Shadowfax is a third-party logistics provider that handles last-mile and intra-city deliveries for e-commerce marketplaces, quick-commerce platforms, and consumer internet companies across India. Its client roster includes Flipkart, Meesho, Zepto, and Zomato, which together account for about 74% of its revenue, according to the prospectus.
Key shareholders include Flipkart, TPG NewQuest, Qualcomm, and the World Bank-backed International Finance Corporation. Founders Abhishek Bansal and Vaibhav Khandelwal are not participating in the offer-for-sale and will retain roughly 20% of the company post-listing.
Financial Highlights and Growth
In the six months ended September 2025, Shadowfax reported:
| Metric | Amount | YoY Change |
|---|---|---|
| Revenue from operations | ₹18.06 billion (about $197.12 million) | +68% |
| Profit | ₹210.37 million (around $2.30 million) | More than doubled |
The sharp rise in revenue reflects higher delivery volumes, but earnings remain tightly linked to demand from a small group of large platform clients.
Use of Proceeds and Infrastructure
The fresh issue will fund:
- Capital expenditure for network infrastructure.
- Lease costs for new first-mile, last-mile, and sorting centres.
- Branding, marketing, and communication expenses.
- A portion will be earmarked for inorganic acquisitions and general corporate purposes.
Shadowfax currently operates about 3.5 million square feet of logistics infrastructure across 14,700 pin codes nationwide.
Comparative Context with Delhivery
Shadowfax’s IPO came more than three years after its larger rival, Delhivery, went public in 2022. Delhivery reported revenue of about ₹89.3 billion (around $974.84 million) in the year ended March 2025, with year-over-year growth in the low teens-underscoring the contrast with Shadowfax’s faster expansion.
Key Takeaways
- Shadowfax raised ₹19.07 billion in its IPO, but shares fell 9% on debut.
- The company’s heavy reliance on a few large clients (about 74% of revenue) has raised investor concerns.
- Revenue grew 68% in the first half of 2025, but profitability remains sensitive to client demand.
- Proceeds will be used to expand infrastructure and support future growth, including potential acquisitions.
- The IPO highlights the broader trend of rapid growth in India’s logistics sector, driven by e-commerce and quick-commerce expansion.
Quotes
“We don’t see this IPO as a destination,” said Bansal, Shadowfax’s co-founder and CEO, during its IPO launch ceremony in Mumbai. “We are not building this for the next quarter. We are building this for the next century. Today, we don’t ring a bell. We are waking up to a new set of possibilities.”
