Bengaluru-based Shadowfax gets board approval to raise Rs 2,000 crore via IPO

Bengaluru-based logistics startup Shadowfax Technologies has secured board approval to raise up to Rs 2,000 crore (approximately $232 million) through an initial public offering (IPO) slated for later this year.

The proposed issue includes a fresh equity issuance of Rs 1,000 crore and an offer for sale (OFS) worth Rs 1,000 crore, Entrackr reported, citing filings with the Registrar of Companies (RoC).

The startup filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India earlier this month via the confidential pre-filing route, a method increasingly favored by new-age companies for its discretion during early regulatory scrutiny.

Founded in 2015 by Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra and Gaurav Jaithliya, Shadowfax has built a robust presence in the last-mile delivery ecosystem, catering to e-commerce firms, direct-to-consumer (D2C) brands, and hyperlocal logistics providers. Its service portfolio spans reverse logistics, time-sensitive parcel exchange, and on-demand deliveries across categories such as food, groceries, and medicines.

The startup’s IPO roadmap, approved during a board meeting on June 24, is supported by marquee investment banks including ICICI Securities, JM Financial, and Morgan Stanley, who have been appointed as advisors to the public issue.

In preparation for its public debut, Shadowfax has restructured its board to meet listing norms and improve governance. Co-founders Praharsh Chandra and Gaurav Jaithlia have been inducted as whole-time directors. The board has also welcomed former IPS officer Dinkar Gupta as an independent director.

Further appointments include veteran executives such as Bijou Kurien, Ruchira Shukla, and Pirojshaw Sarkari, aligning with a broader trend among startups to build seasoned, independent oversight ahead of IPOs.

Shadowfax reported a significant turnaround in its financial performance for FY24. Net losses narrowed by 91.7% to Rs 11.8 crore from Rs 142.6 crore the previous year, while operating revenue surged 33.2% to Rs 1,884.8 crore, up from Rs 1,415.1 crore in FY23.

The startup is reportedly eyeing a post-issue valuation of Rs 8,500 crore (roughly $1 billion), a sharp uptick from its estimated Rs 5,981 crore valuation earlier this year following a $16.8 million infusion from Mirae Asset and Nokia Growth Partners as part of its Series F round.

Since inception, Shadowfax has raised over $246 million, with Eight Roads Ventures, Flipkart, NewQuest Asia, and Qualcomm among its prominent backers.