India’s Shadowfax drops down the list, as the search for customers confuses investors

Shadowfax stumbled in its initial public offering, with shares falling as investors complained about the company’s heavy reliance on a few large e-commerce customers. The company raised about ₹ 19.07 billion (about $208.24 million) in its initial public offering.

Shares fell about 9% from an offer price of ₹124 to ₹112.60 on Wednesday, valuing the Bengaluru-based company at about ₹64.7 billion (about $706.58 million) at the start, matching its private valuation of about ₹60 billion (about $655 billion) at the start. ₹118–124 per unit, including new issue and sale to existing and registered users. about three times it’s over.

Founded in 2015, Shadowfax acts as a third party agenta leading global and regional carrier for e-commerce markets, e-commerce platforms and online shopping companies across India. The company counts e-commerce players including Flipkart and Meesho, as well as fast-food and food delivery platforms Zepto and Zomato, among its biggest customers, which account for about 74% of its revenue, according to the forecast. Its shareholders include Flipkart, TPG NewQuest, Qualcomm, and the World Bank-backed International Finance Corporation.

Shadowfax’s listing comes as the e-commerce and fast-moving consumer goods sectors continue to grow in India, driven by the rise of the Internet, growing urbanization, and the need for fast delivery. Same-day fulfillment or expedited fulfillment platforms are leaning heavily on third-party service providers for global fulfillment, placing companies like Shadowfax at the center of the nation’s online retail industry.

The offering includes shares sold by other startups and sponsors, including Flipkart, Eight Roads Ventures, Nokia Growth Partners, Qualcomm, and Mirae Asset. Founders Abhishek Bansal and Vaibhav Khandelwal will not participate in the sale and together will retain about 20% of the company after listing.

“We don’t see this IPO as a destination,” Bansal, founder and CEO of Shadowfax, said at the IPO launch event in Mumbai. “We’re not building this for the next quarter. We’re building this for the next century. Today, we’re not closing the bell. We’re waking up to new things.”

In the six months ended 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 an estimate. The company’s net profit more than doubled year-on-year to ₹210.37 million (about $2.30 million), reflecting increased supply, although revenue remained consistent with that of a small group of key customers.

Shadowfax plans to use the newly issued funds to fund network operations, pay for infrastructure leases, last miles and infrastructure, and complete advertising, marketing and communications, according to the proposal. A portion of the funds will also be earmarked for environmental and business purposes.

The company currently operates approximately 3.5 million square feet of 14,700 pin facilities across the country.

Shadowfax’s IPO comes three years after its biggest rival, Delhivery, went public in 2022. Delhivery report revenue of about ₹ 89.3 billion (about $974.84 million) in the year ending March 2025, with year-on-year growth in the low-teens, confirming the contrast and growth of Shadowfax.