Shadowfax Technologies, an e-commerce logistics firm backed by Flipkart, plans to launch an Initial Public Offering worth INR 2,500-3,000 crores, aiming for a valuation of INR 5,000-8,000 crores. Founded in 2015, Shadowfax competes with Delhivery, Ecom Express, and others, delivering 1.5 million orders daily across 2,500 locations. It raised USD 50 million in a Series E round, bringing total funding to USD 230 million. In FY 2022-23, Shadowfax's revenue grew by 43% to INR 1,415 crores, while losses decreased. The IPO market for startups in India is growing, with seven listings this year.
Shadowfax Technologies, an e-commerce logistics firm supported by Flipkart, is set to enter the primary market through an initial public offering of INR 2,500-3,000 crores. According to sources, the promoters and private equity investors have commenced early talks with merchant bankers regarding the IPO, aiming for a company valuation between INR 5,000 crore and INR 8,000 crore. Founded in 2015, Shadowfax is based out of Bengaluru and competes with firms such as Delhivery, Ecom Express, XpressBees, LoadShare, Ripple, and Pickrr.
Through a Series E round - a stage in venture capital financing where a company raises funds from investors to fuel its growth or extend its runway - Shadowfax raised about USD 50 million from TPG NewQuest and other investors in India such as Venture Investments, Flipkart, and IFC at a valuation of INR 3,000 crore (USD 355 million), back in February. So far, around USD 230 million has been raised.
Currently, private equity firms hold a large 54% stake, Flipkart owns a 16% stake, while the founders own about 20% share. The remaining percentage is held by angel investors and employees. As per data from Tracxn, at a 25% stake, Eight Roads Venture is the largest, and Nokia Growth has about 6.3%, Mirae Assets owns 5.9%, IFC at 5.5%, NewQuest has about 3.7%, while QualComm holds 4.1%. Eight Rounds Venture, Flipkart, and Shadowfax received emails for comments from the respective firms, but no responses have been sent. Abhishek Bansal, co-founder of Shadowfax, declined to comment.
For the financial year 2022-23, Shadowfax reported a revenue of INR 1,415 crores, which was a 43% increase from the previous year revenue of INR 991 crores. In the same period, loss went down from INR. 176 crores to INR. 143 crores. Shadowfax is reported to deliver 1.5 million orders daily across 2,500 cities and towns. Meanwhile, its competitor, Ecom Express, a third-party logistics company, has recently engaged bankers to launch an IPO worth INR. 3,000 crore. In Ecom Express, the US-based private equity firm Warburg Pincus holds a 33.76% stake, while Switzerland's Partners Group and British International Investment own 17.6% and 6.48% stakes, respectively.
Shadowfax's competitor Delhivery, which was listed in May 2022, is presently trading at INR. 398, which is 18% lower than its IPO price of INR. 487. XpressBees, which was also founded in 2015, is funded by global investors like the Ontario Teachers' Pension Plan, Malaysian fund Khazanah Nasional Bhd, Blackstone, TPG, ChrysCapital, Northwest VP, and Alibaba Group Holding. As of now, they have raised USD 356 million, and was valued at USD 1.5 billion during last year's funding.
This year, seven startups have gone public and been listed on Indian stock exchanges. These include Awfis, a workspace solutions provider; Ixigo and TBO Tek, both travel portals; Manhood, a men's grooming brand; Go Digital General Insurance; TAC Security, a cybersecurity firm; and Trust Fintech, a financial technology company. Last year, five startups were listed, indicating a rising trend of startups opting for public listings in India.
Shadowfax Technologies, an e-commerce logistics firm backed by Flipkart, is planning to go public through an IPO worth INR 2,500-3,000 crores. The company has raised around $230 million so far and is aiming for a valuation of INR 5,000-8,000 crore. Shadowfax competes with other logistics startups like Delhivery, Ecom Express, and XpressBees, some of which have already gone public or are also preparing for IPOs. The rising trend of Indian startups opting for public listings indicates a maturing startup ecosystem in the country.
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