Shadowfax Prepares for an INR 3,000 crore IPO Amid Intensifying Market Rivalry

Shadowfax, a rapidly growing logistics services startup, is gearing up to launch an initial public offering (IPO) aimed at raising between INR 2,500 to 3,000 crore. The company is targeting a valuation in the range of INR 5,000 to 8,000 crore.

According to a report by The Economic Times, sources close to the matter revealed that Shadowfax's promoters and equity investors have already begun discussions with merchant bankers to advance the IPO process.

This move follows Shadowfax's successful Series E funding round in February, where it secured $100 million. The round was led by TPG NewQuest, with continued support from existing investors such as Mirae Asset Venture Investments (India), Flipkart, International Finance Corporation, Nokia Growth Partners, Qualcomm, and Trifecta Capital. The funding round also facilitated a partial exit for Eight Roads Ventures, one of the company's early institutional backers since 2015.

Founded in 2015 by Vaibhav Khandelwal and Abhishek Bansal, Shadowfax specializes in hyper-local and on-demand delivery services for businesses, collaborating with major e-commerce platforms like Flipkart and Meesho. The startup is competing against other industry players such as Delhivery, Ecom Express, XpressBees, LoadShare, Ripple, and Pickrr.

In the fiscal year 2022-23 (FY23), Shadowfax reported a net loss of INR 142.63 crore, showing a 19% year-on-year (YoY) improvement, while its total income increased by 42% YoY, reaching INR 1,423 crore.

Meanwhile, Shadowfax's competitor, Ecom Express, a prominent third-party logistics firm, is also reportedly planning an IPO worth INR 3,000 crore.