Shadowfax Technologies IPO: Check IPO Date, Lot Size, Price & Details

About the Company:

Shadowfax Technologies Limited is a leading new-age, technology-led third-party logistics (3PL) company that has become a critical enabler of digital commerce in India. Since its incorporation in 2015, the company has built an extensive nationwide network encompassing 14,758 pin codes through 4,299 touchpoints and over 3.50 million square feet of operational space.

Shadowfax distinguishes itself through a versatile service portfolio that includes express parcel deliveries, complex reverse pickups with doorstep quality checks, and high-speed 3PL quick commerce solutions. A primary competitive advantage is its gig-based, crowdsourced last-mile fleet, which is the largest among 3PL e-commerce players in India. This model allows for rapid scalability and cost efficiency, helping the company manage nearly 2.50 million orders per day during peak festive seasons.

The company's growth has been exceptional; it was the fastest-growing 3PL company in India by order volume between FY22 and FY25, expanding its express logistics market share from 8% to 23% as of September 2025. By leveraging its proprietary technology to deliver on the pillars of Velocity, Versatility, and Value. Serving major clients like Meesho, Flipkart, and Zepto, Shadowfax is strategically positioned to lead the next wave of India’s hyperlocal and e-commerce evolution.

Shadowfax operates a dedicated asset-light fleet of more than 3,000 trucks daily for inter-sort centre and warehouse transit. This linehaul is powered by a hybrid mesh network with dynamic routing algorithms for optimised connectivity. Supporting these operations is a workforce of 4,472 permanent employees and 17,182 contract workers, complemented by 205,864 average quarterly unique transacting delivery partners acting as gig workers as of 30 September 2025

IPO Details:

Objects of the Offer:

As per the RHP, the net proceeds from Fresh issue of ₹ 1,000 Cr used for:

Key Strengths and Opportunities:

• Agile and customisable logistics services:
  Shadowfax is the only 3PL company of scale in India providing both end-to-end e-commerce delivery and last-mile services for quick commerce, food, and other hyperlocal needs. The company is a market leader by volume in several value-added segments, including reverse pickups, hand-in-hand exchange, same-day delivery, and 3PL quick commerce solutions as of the six months period ended 30 September 2025.
• Largest last-mile gig-based infrastructure:
  Among 3PL e-commerce players, the company has access to the largest crowdsourced last-mile delivery fleet in India, which comprised 205,864 Average Quarterly Unique Transacting Delivery Partners as of 30 September 2025. This fleet is highly interoperable, meaning the same partners are utilised across different service categories through a proprietary allocation engine to maximise utilization and lower delivery costs.
• Extensive nationwide and asset-light network:
  The company services 14,758 pin codes through a network of 4,299 touchpoints, reaching more than 2,300 cities and towns. Shadowfax operates a highly efficient asset-light model, leasing its trucks and facilities while maintaining ownership of the underlying automation technology; this resulted in the highest capital turnover ratio among listed logistics peers in India for the Financial Year 2025 at 3.96x.
• Proprietary and agile technology capabilities:
  The company utilizes a custom-built, modular technology stack that includes SF Maps (an AI-powered address intelligence system) and SF Shield (an advanced fraud detection engine). This infrastructure features a multi-category allocation engine that handles various demand types—from 10-minute quick commerce to multi-day e-commerce shipments—by matching them with delivery partners in real-time based on location and skill level.
• Proven business model with rapid growth and improving profitability:
  Shadowfax was the fastest-growing 3PL company of scale in India by order volume between FY22 and FY25, expanding its express logistics market share from 8% to 23% by September 2025. The company demonstrated strong operating leverage by improving its Adjusted EBITDA margin from (7.18) % in FY23 to 2.86% in the six months period ended 30 September 2025.

Risks:

• Extreme Client Concentration Risk
  A substantial portion of the company’s revenue is tied to a very limited number of customers. The largest client alone contributed 48.91% of revenue for the six months ended 30 September 2025, and as much as 59.52% in FY23. Furthermore, the top five clients accounted for 74.11% of total revenue in the most recent half-year period. The loss of any of these major commercial relationships, or a reduction in their business volumes, would have a material adverse impact on the company’s financial health.
• Reliance on a Non-Exclusive Gig Workforce
  The Shadowfax model depends heavily on a crowdsourced network of 205,864 average quarterly unique transacting delivery partners. Critically, the company does not have exclusive arrangements with these partners; they are gig workers who can choose to work for competitors based on better incentives or payouts. High attrition rates, increasing competition for riders, or potential changes in labour laws regarding gig workers could disrupt operations or significantly drive up costs.
• Vulnerability to Infrastructure and Network Disruptions
  Shadowfax operates through a unified network of 4,299 touchpoints reaching over 14,758 pin codes. Because the network is scaled and integrated, disruptions at key facilities—whether due to equipment failure, power outages, or regional political unrest—can cause severe delays. For instance, a failure in a single sortation component in May 2024 necessitated the complex rerouting of shipments through multiple states, illustrating the risk of operational bottlenecks.
• Lease-Based Model and Rental Uncertainties
  In line with its asset-light strategy, Shadowfax leases all of its logistics facilities. This exposes the company to risks associated with rent renegotiations, non-renewals, or the potential for irregular lease agreements. Rent expenses are a significant part of the cost structure, and any requirement to relocate major hubs due to lease terminations could result in higher costs and temporary service gaps that might alienate clients.

Financial Snapshot:

Relative Valuation:

Note: All financial information above is on a consolidated basis for the year ended March 31, 2025.

Conclusion:

Shadowfax Technologies has built a large-scale, technology-driven logistics platform with strong growth in orders and revenue over recent years. The company has also shown improvement in operating performance, with EBITDA turning positive and losses narrowing, indicating better operating leverage. However, profitability remains limited at the net level, and the business continues to face structural risks such as high client concentration, dependence on a non-exclusive gig workforce, and sensitivity to operational disruptions. In addition, while the company operates in a growing e-commerce and hyperlocal logistics market, the valuation implied by the IPO appears demanding when compared with its current earnings profile and return metrics. At the upper price band, the scope for valuation comfort and margin of safety for investors seems limited. Although the company has long-term strategic relevance within the logistics ecosystem, the current financial position and pricing do not offer a sufficiently attractive risk–reward balance. Based on the company’s financials and valuation, we recommend avoiding the IPO.

IPO Allotment

Find out the allotment status for the Shadowfax Technologies IPO by checking its registrar's page.