Bengaluru-based third-party logistics (3PL) and hyperlocal delivery company, Shadowfax Technologies has filed its updated DRHP with the Securities and Exchange Board of India (SEBI). Shadofax IPO comprises a fresh issue and an OFS of INR 1,000 crore each. Flipkart, Eight Roads Ventures, NewQuest, IFC, and Qualcomm are among the selling shareholders in the issue.
Founded in 2015 by Abhishek Bansal and Vaibhav Khandelwal, Shadowfax has evolved from a small hyperlocal delivery start-up into one of India’s most diversified logistics networks. The firm powers e-commerce deliveries for major platforms such as Meesho, Flipkart, Swiggy, Zepto, and Blinkit, operating across more than 14,700 pin codes with a hybrid workforce of over 2,05,000 gig-based delivery partners.
Table of Contents
Shadowfax IPO Snapshot
| Parameter | Details |
|---|---|
| Total Issue Size | INR 2,000 crore |
| Fresh Issue | INR 1,000 crore |
| Offer for Sale (OFS) | INR 1,000 crore |
| Face Value | INR 10 per share |
| Type of Offer | Fresh Issue + OFS |
| Promoters | Abhishek Bansal and Vaibhav Khandelwal |
| In-Principle Approval | August 13, 2025 |
| Book Running Lead Managers | ICICI Securities, Morgan Stanley India, JM Financial |
| Registrar | KFin Technologies |
Business Overview
Shadowfax has built one of India’s most comprehensive and technology-driven logistics networks, covering the full supply chain — from first-mile pickup to last-mile delivery and reverse logistics. Its asset-light model, supported by automation and data intelligence, allows rapid scalability and operational efficiency across a nationwide footprint.
1. Network Architecture
As of 30 September 2025, Shadowfax operated a three-tier logistics infrastructure comprising:
- 90 first-mile and Return-to-Seller (RTS) centers in high-density zones,
- 53 middle-mile sortation and cross-dock facilities spanning 1.8 million sq. ft., and
- 4,156 last-mile delivery centers (including franchise units) covering 14,758 pin codes across India.
Each network layer plays a distinct role:
- First-mile centers consolidate shipments from sellers and e-commerce warehouses.
- Middle-mile hubs use automated sorters and cross-docks for efficient intercity routing.
- Last-mile centers execute doorstep deliveries through a hybrid of self-operated and franchised nodes.
This integrated, multi-tier structure enables cost-effective coverage and flexibility, allowing Shadowfax to adjust quickly to seasonal demand surges while maintaining delivery reliability.
2. Technology Backbone
Shadowfax’s logistics ecosystem is powered entirely by in-house digital platforms leveraging AI, automation, and real-time analytics. Key systems include:
- Frodo: Delivery partner management and payout platform.
- SF Maps: AI-based geo-mapping system improving navigation accuracy and cluster-based routing.
- SF Shield: AI-driven fraud prevention and identity verification network.
- Sort Buddy: Workflow and anomaly management for sorting facilities.
- TM-VTS: Vehicle tracking and trip optimization system.
- Client Portal: Unified dashboard for clients to manage orders and performance metrics.
Together, these platforms ensure minimal manual intervention, enhanced visibility, and optimized cost per delivery — vital in India’s fragmented logistics landscape.
3. Workforce and Scale
As of FY26 filings:
- 4,472 permanent employees across operations, tech, and sales.
- 17,182 contract workers supporting ground operations.
- 2,05,864 average quarterly transacting gig delivery partners.
The company operates India’s largest crowdsourced last-mile delivery fleet among 3PL e-commerce players, ensuring scalability without proportional cost escalation.
Shadowfax IPO: Business Model & Revenue Streams
Shadowfax functions as an integrated, multi-category logistics platform, designed to serve both large enterprises and small merchants across express, hyperlocal, and reverse logistics segments. Its business model rests on three structural pillars:
1. Asset-Light Operations
All facilities and fleet assets are leased, while control is maintained through technology-led process standardisation. This keeps capital intensity low and allows agile expansion into new service areas.
2. Variable-Cost Workforce
The company’s gig-based structure offers instant scalability. Delivery partners are paid via an app-based, incentive-linked payout system, allowing Shadowfax to match workforce supply with fluctuating demand at optimal cost.
3. Diversified Service Portfolio
Shadowfax derives revenue from four key business lines:
| Service Line | Description | FY25 Revenue |
|---|---|---|
| Express E-commerce Deliveries | Core B2C shipments for major online retailers. | 69% |
| Hyperlocal Deliveries | Instant food, grocery, and quick-commerce orders for clients like Swiggy, Zepto, and Blinkit. | 21% |
| Reverse & Return Logistics | Returns and RTO services through integrated RTS centers. | 8% |
| On-Demand C2C (Shadowfax Flash) | Same-city delivery for individuals and small sellers. | 2% |
This diversified portfolio mitigates client concentration risk and positions Shadowfax across both long-haul logistics and short-distance hyperlocal segments, balancing growth and profitability.
Financial Performance
Shadowfax’s financial trajectory tells a turnaround story that is rare in India’s tech-driven logistics space. After years of high-growth losses, the company posted its first full-year profit in FY 2024–25, reflecting both operational discipline and scalable technology adoption.
| Metrics | FY23 | FY24 | FY25 | 6M FY26 |
|---|---|---|---|---|
| Revenue from Operations | 1,415.12 | 1,884.82 | 2,485.13 | 1,805.64 |
| Total Expenses | 1,565.53 | 1,908.36 | 2,508.60 | 1,798.77 |
| Profit / (Loss) After Tax | (142.64) | (11.88) | 21.04 | 21.04 |
| EBITDA Margin (%) | (7.18) | 1.02 | 1.96 | 2.86 |
| EPS (INR) | (3.38) | (0.28) | 0.13 | 0.41 |
Selling Shareholders in Shadowfax IPO
Below are the principal selling shareholders and their pre-Offer shareholding details (as per the UDRHP):
| Name of Selling Shareholder | Type | Offer Value (INR Cr) |
|---|---|---|
| Flipkart Internet | Investor | 237.07 |
| Eight Roads Investments Mauritius II | Investor | 197.00 |
| NewQuest Asia Fund IV (Singapore) | Investor | 150.00 |
| Nokia Growth Partners IV, L.P. | Investor | 100.78 |
| International Finance Corporation (IFC) | Investor | 83.66 |
| Mirae Asset – Naver New Growth Fund I | Investor | 69.06 |
| Mirae Asset – GS Retail New Growth Fund I | Investor | 68.97 |
| Qualcomm Asia Pacific | Investor | 62.42 |
| Kunal Bahl (Ex-CEO Snapdeal) | Individual | 14.02 |
| Rohit Kumar Bansal | Individual | 14.02 |
Industry Overview & Competitive Landscape
India’s logistics sector is projected to exceed USD 330 billion by 2030, driven by structural e-commerce growth, infrastructure modernisation, and the rise of quick commerce. Within this, 3PL and last-mile logistics are the fastest-expanding verticals.
The 3PL logistics sector is consolidating rapidly, dominated by Delhivery, Xpressbees, Ecom Express, and Blue Dart, while several niche players cater to specialised verticals. Amid this, Shadowfax has carved out a distinctive identity through its crowdsourced last-mile delivery model and deep integration with top e-commerce and quick-commerce platforms.
According to RedSeer Consulting, Shadowfax’s share of India’s e-commerce shipment volumes rose from 8% in FY 22 to over 21% in Q1 FY 26, making it one of the fastest-growing 3PL players in the country.
Unlike peers focused purely on B2C parcel delivery, Shadowfax combines:
- Hyperlocal capabilities (rare among large 3PLs),
- End-to-end fulfilment from warehouse pick-up to doorstep delivery, and
- A unified technology stack that manages multiple service lines in real time.
While competition remains intense — especially after the Delhivery–Ecom Express merger and Xpressbees’ expansion into grocery fulfilment — Shadowfax’s lean operating model offers resilience against price-driven market pressures.
Shadowfax IPO: Utilisation of Funds
The proceeds from the fresh issue will be directed toward:
- Capital expenditure for network infrastructure — including automation in sortation centres and new first-mile and last-mile hubs – INR 423.43 Cr
- Lease payments for newly established facilities – INR 138.6 Cr
- Branding and marketing initiatives to strengthen its nationwide visibility – INR 88.6 Cr
- Inorganic acquisitions and general corporate purposes – Balance
The company emphasises that over 40% of the proceeds will go directly into infrastructure and technology investment — indicating a focus on scale efficiency rather than debt reduction.
Shadofax IPO: Key Strengths
1. Profitable Growth Trajectory: Shadowfax has transitioned from a start-up in expansion mode to a mature logistics player delivering profits. FY25 marked its first year of positive net income, signaling operational efficiency and cost optimization. The company’s focus on automation, route planning, and demand-supply matching has turned scale into an advantage rather than a burden.
2. Largest Crowdsourced Delivery Fleet in India: With over 2,05,000 active delivery partners, Shadowfax operates one of India’s largest gig-based logistics networks. This flexible, variable-cost model allows the company to expand rapidly during demand surges like festive seasons without proportionate increases in fixed costs.
3. Deep Technology Integration: Its proprietary suite of platforms — including Frodo, SF Maps, SF Shield, and Sort Buddy — enables end-to-end visibility, automated sorting, and real-time fraud detection. This deep in-house tech integration is rare even among India’s listed logistics peers, and forms the backbone of its cost and service efficiency.
4. Diversified Client Base: The company counts leading platforms such as Meesho, Flipkart, Swiggy, Zepto, Blinkit, Nykaa, and Zomato among its clients, serving multiple logistics use cases across e-commerce, grocery, and food delivery. This cross-vertical presence helps mitigate cyclical demand risk within any single segment.
5. Asset-Light and Scalable Model: Operating through leased infrastructure and franchised last-mile centres, Shadowfax’s model emphasises scalability and efficient capital use. As of September 2025, it runs 90 first-mile centres, 53 middle-mile sortation hubs, and 4,156 last-mile centres, reaching over 14,758 pin codes nationwide.
Shadowfax IPO: Risks & Challenges
Despite the strong fundamentals, investors should note key risk areas outlined in the Shadowfax IPO UDRHP:
- Revenue Concentration: The top client accounts for around 59% of total revenue, making Shadowfax highly dependent on a few large platforms. Any shift in these relationships could materially impact earnings.
- Intense Competition: Rivals like Delhivery, Xpressbees, and Blue Dart continue to expand aggressively, often competing on pricing and speed — putting pressure on margins.
- Regulatory & Labour Sensitivity: As a gig-economy-driven company, Shadowfax faces potential cost escalation from future labour reforms that could alter the definition or rights of gig workers.
- Operational & Data Security Risks: Handling millions of transactions and customer data points daily, the company remains exposed to risks of data breaches or operational lapses, despite its robust AI-driven systems.
- Working Capital Requirements: With a large portion of business in cash-on-delivery (COD) shipments, maintaining liquidity and timely settlements remains critical to sustaining operational balance.
Final Words
If executed well, Shadowfax could become India’s first truly hybrid logistics-tech stock — part traditional fulfilment company, part digital platform — appealing both to long-term institutional investors and new-age retail participants seeking exposure to the next phase of India’s e-commerce infrastructure story.
Shadowfax’s asset-light, gig-driven model differentiates it from traditional courier networks and positions it as a hybrid between a logistics infrastructure provider and a tech-enabled platform. Shadowfax IPO, therefore, isn’t just a capital-raising event — it’s also a test of public investors’ appetite for scalable gig-economy logistics models.
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