In a major move for the Indian logistics-tech sector, Shadowfax Technologies is set to launch its Initial Public Offering (IPO) next week. According to reports finalized on January 12, 2026, the Bengaluru-based company is targeting a post-market valuation of approximately ₹7,400 crore ($890 million).
This valuation reflects a more “conservative pricing strategy” intended to attract long-term institutional investors, down from previous internal estimates that ranged between ₹8,500 crore and ₹9,000 crore.
1. IPO Structure and Issue Details
Shadowfax has slightly adjusted its total issue size to ₹1,900 crore, down from the ₹2,000 crore mentioned in its updated draft red herring prospectus (UDRHP) filed in late 2025.
| Component | Amount | Details |
| Fresh Issue | ₹1,000 Crore | Capital for infrastructure, technology, and debt. |
| Offer for Sale (OFS) | ₹900 Crore | Partial exit for Flipkart, TPG, and Snapdeal founders. |
| Total Issue Size | ₹1,900 Crore | Proposed listing on NSE and BSE. |
| Price Band | TBA | Expected to be announced later this week. |
Key OFS Participants: Major institutional backers including Flipkart Internet, Eight Roads Ventures, IFC, Mirae Asset, and Qualcomm Asia Pacific will offload portions of their stakes.
2. Strategic Use of Proceeds
Shadowfax plans to deploy the ₹1,000 crore from the fresh issue to fuel its “hyper-growth” phase:
- Network Expansion (₹423 Crore): Investing in automated cross-belt sorters, X-Ray machines, and IT assets to reduce manual intervention.
- Lease Payments (₹139 Crore): Funding lease obligations for new first-mile, last-mile, and sorting centers across over 400 cities.
- Branding & Marketing (₹89 Crore): Scaling its brand presence to attract more Direct-to-Consumer (D2C) and SME clients.
- Inorganic Growth: A portion is reserved for strategic acquisitions to bolster its supply chain capabilities.
3. Financial Performance: The Path to Profitability
Shadowfax enters the public markets following a significant operational rebound. The company serves over 14,750 pincodes and has seen its express parcel market share surge to 21% (up from 8% in 2022).
- Revenue Boom: Reported operational revenue of ₹1,805 crore for H1 FY26 (April-Sept 2025), a 68% year-on-year increase.
- Profitability Achieved: Turned a net profit of ₹21 crore in H1 FY26, a 114% jump from the previous period.
- Revenue Mix: The E-commerce express parcel segment remains the primary driver (70% of business), followed by hyperlocal and quick commerce logistics (20%).
4. Competitive Landscape and Market Context
Shadowfax’s IPO comes as logistics stocks face volatility; competitor Delhivery saw a 17% stock price decline in late 2025. By choosing a more conservative ₹7,400 crore valuation, Shadowfax aims to offer a “valuation buffer” to new investors.
The company joins a massive wave of tech IPOs in 2026, alongside other anticipated listings such as Zepto, PhonePe, and Shiprocket, as startups look to raise a cumulative ₹50,000 crore from Indian markets this year.
