Flipkart-backed Shadowfax gains regulatory approval for IPO in India

Logistics firm clears Sebi hurdle to launch offering estimated at up to ₹2,500 crore; updated draft prospectus expected soon as company targets valuation near ₹8,500 crore

Shadowfax Technologies, a logistics firm backed by Flipkart, has received clearance from the Securities and Exchange Board of India (Sebi) to proceed with its initial public offering, according to documents posted on the market regulator’s website.

 

Sebi issued its observations on the company’s pre-filed draft during the week ended October 10.

 

Shadowfax had earlier submitted its draft red herring prospectus confidentially in July under Sebi’s pre-filing route, allowing the company to test investor interest and refine offering details without publicly disclosing sensitive business data. With regulatory clearance now in hand, Shadowfax is expected to file an updated draft prospectus in the coming days, according to sources.

 

The offering is expected to raise between ₹2,000 crore and ₹2,500 crore through a combination of fresh issuance and an offer for sale by existing shareholders. The IPO could value the company at around ₹8,500 crore, according to sources. This represents a significant premium to its February 2025 funding round valuation of approximately ₹6,000 crore, reflecting investor confidence in the logistics sector’s growth prospects.

 

In its last fundraise in February 2025, the company raised primary and secondary capital at an approximate valuation of ₹6,000 crore.

 

The company plans to utilise the proceeds from the fresh issue towards enhancing capacity, driving growth, and further investments in its network business, according to sources.

 

The e-commerce segment is the major revenue contributor, accounting for around 75 per cent of the business, positioning Shadowfax to benefit from India’s booming online retail sector. The remainder comes from quick commerce and hyperlocal deliveries.

 

Shadowfax is backed by marquee investors such as Flipkart, TPG, Eight Roads Ventures, and Mirae Asset Ventures. It faces competition from several logistics and delivery companies in India, including Delhivery, XpressBees, Ecom Express, Blue Dart, and Shiprocket.

 

The company reported a 33.2 per cent rise in revenue to ₹1,885 crore in fiscal 2024 and narrowed its losses sharply to ₹11.8 crore, down nearly 92 per cent from the previous year.