Third-party logistics provider Shadowfax’s upcoming initial public offering (IPO) will see several of its institutional and individual investors partially exit their holdings, according to its updated draft red herring prospectus (DRHP). The company plans to raise up to Rs 2,000 crore, of which Rs 1,000 crore will be through a fresh issue of shares and the rest via the offer-for-sale (OFS).
Shadowfax’s largest shareholder, Flipkart, which holds a 14.8% stake in the company, will be the largest seller, looking to sell up to Rs 237 crore worth of shares. Flipkart had initially invested in Shadowfax in 2019 as part of its $60 million Series D round and continued to double down in subsequent funding rounds.
Besides Flipkart, one of the company’s early backers, Fidelity-backed Eight Roads Ventures, will also look to sell up to Rs 197 crore worth of shares in the IPO. The firm owns a 14.2% stake in the company. Private equity firm TPG’s NewQuest Asia Fund, which holds a similar stake, will sell shares worth Rs 150 crore. Other shareholders selling their stake include the US-based VC firm Nokia Growth Partners, IFC, Mirae Asset, and Qualcomm.
Angel investors and Snapdeal co-founders, Kunal Bahl and Rohit Bansal, are also looking to sell shares worth up to Rs 14 crore each. Bansal’s Titan Capital was the first institutional cheque in the company in 2015.
Co-founders and promoters Abhishek Bansal and Vaibhav Khandelwal hold 10.8% and 8.4% stakes, respectively.
The company wants to use the IPO proceeds towards funding capital expenditure related to its network infrastructure, funding of lease payments for new first-mile, last-mile, and sort centers, as well as towards marketing initiatives and inorganic acquisitions.
In FY25, the company generated revenue from operations of Rs 2,485 crore, 32% higher y-o-y, with an adjusted Ebitda margin of 1.96%. This translated into a profit of Rs 6.4 crore during the fiscal year, compared to a loss of nearly Rs 12 crore in FY24.
For the six months ending September 30, revenue jumped nearly 70% y-o-y to Rs 1,805 crore, while net profit increased to Rs 21 crore from Rs 9.8 crore.