Shadowfax stumbled in its market debut, with shares falling as investors weighed concerns about the logistics company’s reliance on some big e-commerce clients. The company raised around ₹19.07 billion (about $208.24 million) in its initial public offering.
The stock fell about 9% from its offer price of ₹124 to ₹112.60 on Wednesday, valuing the Bengaluru-based logistics company at about ₹64.7 billion (about $706.58 million) at its debut, roughly matching its last private valuation of close to ₹60 billion, about $165 billion (about $165 billion) priced in a band of ₹118–124 per share, combining the new issue with an offer for sale by existing and subscribing shareholders almost three times by.
Founded in 2015, Shadowfax operate as a third party logistics providerhandles last-mile and intra-city shipments for e-commerce marketplaces, e-commerce platforms and consumer internet companies in India. The company counts e-commerce players including Flipkart and Meesho, as well as e-commerce and food delivery platforms Zepto and Zomato, among its biggest clients, which account for about 74% of its revenue, according to its prospectus. Major shareholders include Flipkart, TPG NewQuest, Qualcomm, and the World Bank-backed International Finance Corporation.
Shadowfax’s listing comes as the e-commerce and e-commerce sectors continue to grow in India, driven by internet penetration, urbanization, and demand for faster delivery. Platforms that offer same-day or expedited fulfillment increasingly rely on third-party logistics providers for national scale, placing companies like Shadowfax at the center of the nation’s consumer internet supply chain.
The offering includes shares sold by several early stage and institutional backers, including Flipkart, Eight Roads Ventures, Nokia Growth Partners, Qualcomm, and Mirae Asset. Founders Abhishek Bansal and Vaibhav Khandelwal are not participating in the bid for sale and will retain about 20% of the company after listing.
“We don’t see this IPO as a destination,” said Bansal, co-founder and CEO of Shadowfax, during the IPO launch ceremony in Mumbai. “We are not building this for the next quarter. We are building this for the next century. Today, we are not ringing the bell. We are waking up to a new set of possibilities.
In the six months ending September 2025, Shadowfax reported revenue from operations of ₹ 18.06 billion (about $197.12 million), up 68% from the same period a year earlier, according to its prospectus. The company’s profit more than doubled year-over-year to ₹ 210.37 million (about $2.30 million), reflecting higher delivery volumes, although revenue remained tied to demand from a small group of large platform clients.
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Shadowfax plans to use the proceeds from the fresh issue to finance capital expenditures for network infrastructure, pay rent for new first-mile, last-mile and sorting centers, and meet branding, marketing and communication costs, said its prospectus. Part of the proceeds will also be kept for inorganic acquisitions and general corporate purposes.
The company currently operates approximately 3.5 million square feet of logistics infrastructure in 14,700 zip codes nationwide.
Shadowfax’s IPO comes more than three years after its larger rival, Delhivery, went public in 2022. Delhivery reported revenue of ₹89.3 billion (about $974.84 million) in the year ending March 2025, with year-over-year growth in the low teens, underlining the contrast with Shadowfax’s faster expansion.