Shadowfax IPO Gets SEBI Clearance as Flipkart-Backed Firm Prepares Market Debut

According to documents published on the Securities and Exchange Board of India’s (Sebi) website, Flipkart-backed logistics company Shadowfax Technologies has been given the go-ahead to move on with its IPO. In the week ending October 10, Sebi released its comments regarding the company’s pre-filed draft.

In July, Shadowfax filed its draft red herring prospectus under Sebi’s pre-filing procedure, which allowed the company to test investor interest and fine-tune offering details without revealing critical company information to the public. According to sources, Shadowfax is anticipated to submit an amended draft prospectus in the days ahead now that regulatory clearance has been obtained.

How Shadowfax Plans to Execute its IPO Listing

By combining a new issuance with an offer for sale by current shareholders, the offering is anticipated to raise between INR 2,000 crore and INR 2,500 crore. The IPO might value the company at over INR 8,500 crore, according to reports. This price is a substantial premium over its February 2025 financing round valuation of almost INR 6,000 crore, indicating investor confidence in the future potential of the logistics industry.

The company raised primary and secondary capital at an approximate valuation of INR 6,000 crore in February 2025, which was the last time it raised funds. According to insiders, the company intends to use the money raised from the new issuance to expand its network operations, boost growth, and increase capacity.

How Shadowfax Plans to Use Proceeds?

According to insiders, the company intends to use the money raised from the new issuance to expand its network operations, boost growth, and increase capacity. About 75% of the company’s revenue comes from the e-commerce division, which puts Shadowfax in a strong position to profit from India’s expanding online retail market.

The rest is derived from hyperlocal delivery and rapid commerce. Prominent investors like Flipkart, TPG, Eight Roads Ventures, and Mirae Asset Ventures support Shadowfax. Several Indian logistics and delivery firms, such as Delhivery, XpressBees, Ecom Express, Blue Dart, and Shiprocket, compete with it. In fiscal 2024, the company’s revenue increased by 33.2% to INR 1,885 crore, but its losses decreased significantly to INR 11.8 crore, which was roughly 92% less than the year before.