Shadowfax Technologies IPO opens on January 20: Check the business model, financials, strengths and risks

Shadowfax Technologies IPO details

Shadowfax Technologies IPO aims to raise ₹1,907.27 crore through its public issue, which is a 100% book-built and includes a fresh issue and offer-for-sale of over 1.5 crore shares

The company has fixed the price band of the issue at ₹118 to ₹124 per share. The lot size, or the minimum bid quantity to apply for the issue, is 120 shares. This equates to a minimum investment amount of ₹14,880 per lot at the upper end of the price band for retail investors.

Shadowfax Technologies has appointed ICICI Securities as the book-running lead manager of the IPO, while Kfin Technologies is the registrar for the issue.

Shadowfax Technologies IPO timeline

Shadowfax Technologies IPO will remain open for bidding from January 20 to January 22, 2025. After the bidding is closed, the allotment of shares is expected to be finalised on January 23.

Successful bidders can expect the shares to be credited to their demat accounts by January 27, with others receiving refunds on the same day. Shadowfax Technologies shares are scheduled to list on the BSE and NSE on January 28, 2025.

Financial snapshot

Shadowfax Technologies IPO objective

• Funding for capex: The company will use ₹423.43 crore towards network infrastructure.
• Funding for Opex: The company will use ₹138.64 crore for lease payments for new first mile centers, last mile centers and sort centres.
• Marketing and advertising expenses: The company will use ₹88.57 crore for branding, marketing and communication costs.
• General corporate purposes: Part of the IPO proceeds will be used for unidentified acquisitions, general corporate purposes and issue expenses.

About the company

Shadowfax network spans 14,758 pin codes in the country as of September 30, 2025. The company provides diverse services, including express parcel deliveries, reverse pickups, exchange deliveries, same-day and prime deliveries, quick commerce, hyperlocal deliveries, mobility services, and critical logistics.

The company is among the fastest-growing major 3PL players in India. Its proportion of e-commerce shipments has dramatically risen from around 8% in FY22 to close to 23% in H1 FY26. The company is at the forefront of the market in reverse pickups, quick commerce logistics, and same-day deliveries (by order volume) in FY25 and H1FY26. In FY25, it managed 43.64 crore orders, representing a growth of nearly 30% CAGR since FY23. In H1FY26, it handled 29.45 crore orders, signifying a growth of more than 50% compared to H1FY25.

Shadowfax operates mainly through three key service segments: express services accounted for a revenue of ₹1,716.08 crore in FY25 and recorded a growth of 29% CAGR over the FY23-FY25 period. This comprises forward deliveries, reverse logistics, exchanges, and prime deliveries spread over 14,758 pin codes. The hyperlocal services segment that covers quick commerce, food delivery, and mobility generated revenue of ₹513.24 crore in FY25 and the number of orders processed during the year was close to 9.5 crore. Other logistics services contributed ₹255.80 crore in FY25 and include critical logistics, unbundled services, and dark store operations.

The company has a strong logistics network across the country with 4,299 touchpoints and 53 sort centres that span over 1.8 msf. The total space for first-mile, middle-mile, and last-mile operations is more than 3.5 msf. Shadowfax also operates a large gig-based delivery model. On a quarterly basis, it has 205,000+ active delivery partners spread over more than 2,300 cities. This asset-light model keeps the cost structure flexible. Its proprietary technology platform comprises AI-powered route mapping (SF Maps), intelligent order allocation, and smooth API integrations for clients.

Strengths and opportunities

• Offers e-commerce and hyperlocal delivery: The company is the only third-party logistics (3PL) player in India that offers end-to-end e-commerce delivery at scale and also operates hyperlocal/quick commerce deliveries at scale. This enables customers to have a single logistics partner for multiple delivery requirements, thus increasing the client-partner relationship and the share of the client's wallet.
• Strong client relationships: Most of the top customers of the company engage several service lines like express delivery, hyperlocal, reverse logistics, same-day delivery, etc. Such a deep integration leads to less customer churn and more long-term revenue visibility. Besides, the company was involved in designing delivery solutions with its large clients, e.g. hand-in-hand exchange and faster delivery timelines, which indicate strong operational trust.
• Largest gig-based last-mile delivery network: The company runs the biggest crowdsourced last-mile delivery fleet in India among the 3PL players. It has 205,864 average quarterly active delivery partners in H1FY26 and operations across 2,300+ cities. The gig fleet is utilised for different services (e-commerce, quick commerce, hyperlocal), which results in high efficiency of the fleet and hence low delivery costs.

Risks and Threats

• High dependence on a few large clients: The company is very dependent on a small number of clients for its revenue. Its biggest client alone accounted for ~49-59% of revenue in FY23-FY25, while the top 5 clients accounted for 75-85% of revenue. Any decrease in volumes, pricing pressure, or loss of a large client like Meesho or Flipkart can have a significant impact on revenue and profitability.
• History of losses and uncertainty: Even though the company has turned a profit in FY25 and the recent six-month periods, it has a history of losses, including a loss of ₹142.6 crore in FY23 and ₹11.9 crore in FY24. Profit margins are still very low (FY25 PAT margin ~0.3%), and the company needs to invest continuously in network expansion, technology, and incentives. There is a possibility that profitability might not be sustained if costs increase at a faster rate than revenues.
• Operational risk due to leased logistics: The firm runs an extensive logistics network with 4,299 touchpoints, 3.5+ Mn sq. ft. of leased area, and the fact that all facilities are leased, not owned. A disruption resulting from non-renewal of a lease, higher rents, political instability, or infrastructure failure can have an impact on the level of services.