SUMMARY
- Flipkart-backed logistics company Shadowfax is expected to raise between Rs 2,500 – 3,000 crore through an IPO at a valuation of Rs 5,000 – 8,000 crore.
- Shadowfax had secured $50 million as part of its Series E funding round led by TPG NewQuest, and existing investors Venture Investments, Flipkart, and IFC in February.
- Established in 2015 by Vaibhav Khandelwal and Abhishek Bansal, Shadowfax offers on-demand delivery services at a hyper-local level.
Flipkart-backed logistics company Shadowfax is expected to raise between Rs 2,500 – 3,000 crore through an initial public offering (IPO) at a valuation of Rs 5,000 – 8,000 crore.
Following this, the company’s founders and its equity holders have begun discussions with merchant bankers for the IPO, as per an ET report.
The move follows when Shadowfax secured $50 million as part of its Series E funding round led by TPG NewQuest, and existing investors Venture Investments, Flipkart, and IFC, at a valuation of $355 million in February 2024. As of now, the startup has raised about $230 million.
Furthermore, Flipkart, Mirae Asset Venture Investments (India), Trifecta Capital, IFC, Nokia Growth Partners, and Qualcomm also participated in the round among others. It has also facilitated a partial buyout of the company’s initial institutional investor from 2015, Eight Roads Ventures.
Established in 2015 by Vaibhav Khandelwal and Abhishek Bansal, Shadowfax offers on-demand delivery services at a hyper-local level. It collaborates with various e-commerce platforms such as Flipkart and Meesho among others.
Currently, private equity firms hold the majority stake at 54%, followed by Flipkart with 16%, and the founders with 20%. The remaining stakes are owned by angels and the company’s employees.
According to Tracxn, other shareholders in Shadowfax include Nokia Growth with 6.3%, Mirae Assets with 5.9%, IFC holding 5.5%, NewQuest with 3.7%, Qualcomm having 4.1%, and others. Notably, Eight Road Ventures is the largest shareholder with 25% stake.
In FY23, Shadowfax reported a consolidated total operating income of Rs 1,415 crore, marking a 43% increase from Rs 991 crore in FY22. Additionally, the company’s total losses decreased to Rs 143 crore from Rs 176 crore in the same period. It is noted to process 1.5 million orders daily across 2500 cities and towns in India.
The Bangalore-based e-commerce firm competes with other companies like Delhivery, XpressBees, Ecom Express, Ripple, LoadShare, and Pickrr.
Shadowfax’s competitor, Ecom Express South Asia, a third-party logistics company, is also said to be planning an IPO with an offering price of Rs 3,000 crore.
