Logistics firm Shadowfax allocates fresh ESOPs worth $7.3 million

Logistics startup Shadowfax has introduced new employee stock options (ESOP) as part of its existing ESOP 2016 plan.

According to regulatory filings from the Registrar of Companies, the board has approved an amendment to the Employee Stock Option Plan 2016, adding 20,229 new stock options for the company, its subsidiaries, and associated entities. Each ESOP option will be converted into equity shares.

According to Entrackr's report, the newly added ESOP options are valued at approximately Rs 61 crore ($7.3 million).

The objective of ESOP is primarily to attract, motivate, and retain talent within the management team, enabling employees to partake in the company’s long-term growth.

What is the total value of the ESOP plan?

The total value of Shadowfax's ESOP Plan is approximately Rs 264 crore, encompassing 86,033 employee stock options.

The development comes almost three months after it raised $100 million in a Series E funding round led by TPG NewQuest, which also included secondary financing.

Focused on expanding operations

Shadowfax operates an extensive logistics network, delivering services with industry-leading turnaround times (TAT) at competitive rates.

The company claims that it manages a daily operation of 2,000 trucks and services over 200 airline routes, connecting more than 3,000 last-mile hubs.

Shadowfax’s network includes 125,000 active delivery partners monthly and 3.5 million registered users.

Recently, the company expanded its services to Port Blair and is aiming to cover over 15,000 pincodes by March 2025.

How well Shadowfax is performing financially?

Financially, Shadowfax reported a revenue of Rs 1,415.40 crore in FY23, up from Rs 990 crore in FY22.

Additionally, The company managed to reduce its losses to Rs 141 crore in FY23, down from Rs 176 crore in the previous fiscal year. Shadowfax was founded by Abhishek Bansal, Praharsh Chandra, Vaibhav Khandelwal, and Gaurav Jaithliya.