Shadowfax Technologies IPO – Raising Rs 2000 Crore for Growth

Logistics startup Shadowfax Technologies has submitted a revised DRHP to SEBI for its IPO, aiming to gather Rs 2000 crore. This amount consists of Rs 1000 crore from a fresh issue and Rs 1000 crore from an offer for sale. In the first half of FY26, Shadowfax demonstrated remarkable growth with over 68% year-on-year revenue increase, while profits have more than doubled. To provide context, the company reported a 32% year-on-year revenue increase of Rs 2485 crore in FY25, along with a net profit of Rs 6.4 crore.

The Flipkart-backed enterprise saw its operating revenue soar by over 68% year-on-year to Rs 1805.6 crore in H1 FY26, in contrast to Rs 1072 crore for the same timeframe last year, as detailed in its restated financial statement included in the UDRHP.

About Shadowfax Technologies

Founded in 2015 by Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya, the Bengaluru-based company specialises in last-mile delivery across e-commerce and hyperlocal markets. Shadowfax serves more than 14000 pin codes through a network of 1.25 lakh delivery partners.

Revenue Breakdown

The revenue from express parcel deliveries made up nearly 69% of the company’s operating total, amounting to Rs 1238.7 crore. The hyperlocal segment encompasses quick commerce delivery and constitutes around 20% of the business as of H1 FY26, generating Rs 359.3 crore, marking an 82.6% year-on-year growth. Additional logistics services added Rs 207.5 crore to the revenue streams.

Shadowfax also reported Rs 14.2 crore from non-operating activities, escalating its total revenue to Rs 1819.8 crore in H1 FY26.

Expense Overview

Delivery personnel expenses represented 53% of the total costs, amounting to Rs 956 crore in H1 FY26, which marks a 69% rise from Rs 565.3 crore in H1 FY25. Transportation costs are another significant expense, constituting 18% of total costs at Rs 325.2 crore, while expenses related to employee benefits increased by 40% to Rs 171.8 crore. Furthermore, the cost associated with lost shipments was Rs 148.2 crore in H1 FY26, over three times more than the previous year. Other operational expenses, including rent, travel, professional fees, and miscellaneous costs, added an extra Rs 197.4 crore, thereby elevating total expenses to Rs 1798.7 crore in H1 FY26. Overall, total expenses rose nearly 67% from Rs 1079 crore in H1 FY25.

As revenue growth slightly surpassed expenditure, Shadowfax’s profit skyrocketed more than twofold to Rs 21 crore during the first half of FY26, compared to Rs 9.8 crore in H1 FY25.

On a unit basis, Shadowfax spent Rs 1 to generate a rupee of operating income during this period. The company’s EBITDA margin also saw improvement, reaching 3.56% in H1 FY26.

Funding and Goals

According to various sources, Shadowfax has raised close to $246 million so far. Eight Roads Ventures is the primary external investor, accompanied by Flipkart, NewQuest Asia, and Nokia Growth Partners.

Per its UDRHP, the IPO-bound enterprise intends to utilise the fresh issue proceeds of Rs 1000 crore to enhance its logistics infrastructure, boost technological capabilities, and explore inorganic growth opportunities. A portion of the funds will also be designated for paying off existing debts.