Shadowfax Technologies IPO Analyzed

Shadowfax Technologies, a delivery company supported by Flipkart, is getting ready to share a portion of its business with the public. The Securities and Exchange Board of India (Sebi) has given the okay for Shadowfax to sell shares to investors. This means they can now fully launch their Initial Public Offering (IPO).

Key Points

• Shadowfax secured Sebi’s approval for its upcoming IPO launch.
• IPO aims to raise ₹2,000-₹2,500 crore for company expansion.
• Expected valuation of around ₹8,500 crore – significant growth signal.
• Proceeds will boost capacity, growth, and network investments.
• 75% revenue from e-commerce, capitalizing on online retail growth.
• Key investors include Flipkart, showcasing strong market confidence.

The company first shared details about its IPO with Sebi privately. This allowed them to check if investors were interested and make changes before announcing it publicly. They submitted a draft document in July, which Sebi reviewed over the past few weeks.

Shadowfax plans to sell shares to raise money – between ₹2,000 and ₹2,500 crore. If successful, the company’s value could reach approximately ₹8,500 crore. This is a lot higher than the last time they raised money (₹6,000 crore in February 2025).

The money they get from the IPO will be used to improve their delivery network and grow their business. A large part of their business – about 75% – comes from selling products online. They also handle quick deliveries and local deliveries.

Shadowfax has backing from big companies like Flipkart, TPG, and others. There’s a lot of competition in the delivery business in India, including companies like Delhivery and Ecom Express. They’ve shown strong growth, increasing revenue by 33.2% to ₹1,885 crore in the last year, and significantly reduced their losses.

Investing in Shadowfax reflects confidence in India’s rapidly expanding e-commerce landscape.