Shadowfax transitions into a publicly traded company, preparing for an Initial Public Offering (IPO)
In the bustling world of logistics, one name that continues to make waves is Shadowfax. The tech-driven logistics startup, founded in 2015, has announced plans for an initial public offering (IPO), joining the ranks of new-age companies that went public last year.
The company, headquartered in Bengalurú, has made significant strides in its operations. In the financial year 2024, Shadowfax managed to cut its net loss by nearly 92% and saw a 33% increase in its top line. These impressive figures have set the stage for the upcoming IPO.
The planned IPO value range for Shadowfax is between ₹2,000 crore and ₹2,500 crore, with around half of this amount coming from a fresh issue of shares. The company's valuation at the time of the IPO is expected to be in the range of ₹5,500 crore to ₹6,000 crore, depending on market conditions. However, some sources suggest a potential valuation of up to ₹8,500 crore, although the majority of recent reports and company valuations seem to cluster around the ₹5,500-6,000 crore range.
The public issue will consist of fresh equity shares and an offer for sale of equity shares by certain existing shareholders. Notable investors backing Shadowfax include Flipkart, Eight Roads Ventures, TPG, and others. The startup has also strengthened its board and raised fresh funding in the run-up to its IPO.
Shadowfax has shipped an impressive 1 billion parcels to over 18,000 pincodes across India, serving clients such as Nykaa, AJIO, Flipkart, Meesho, and more. The company's recent acquisition of CriticaLog India in January has further expanded its offerings.
The IPO will be helmed by ICICI Securities, JM Financial, and Morgan Stanley, who have been appointed as the investor bankers. Five other ventures, including PhysicsWallah, Zappfresh, Ather Energy, ArisInfra, BlueStone, among others, have also filed their draft red herring prospectuses (DRHPs) with SEBI, indicating a busy IPO season ahead.
Over 20 new-age ventures are planning to go public in 2023, with Zepto, bOAt, Car Dekho, and Shadowfax among them. As these companies prepare to take the plunge, the Indian market eagerly awaits the impact they will have on the stock market landscape.
In its preparations for the IPO, Shadowfax, a tech-driven logistics startup, is also venturing into new realms of finance and investing, aiming to bolster its business operations and capitalize on the technology that has fueled its growth. Notably, the company's recent board strengthening and fresh funding rounds have been strategic moves toward its initial public offering.
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