IPO-Bound Shadowfax’s FY24 Loss Falls 92% To INR 12 Cr

SUMMARY

Shadowfax’s net loss declined to INR 11.8 Cr from INR 142.6 Cr in FY23 due to growth in top line and improvement in margins

Operating revenue jumped 33.19% to INR 1,884.8 Cr in FY24 from INR 1,415.1 Cr in the previous year

Shadowfax is eyeing INR 2,500 Cr to INR 3,000 Cr initial public offering (IPO) at a valuation of INR 5,000 Cr to INR 8,000 Cr

Logistics startup ShadowFax slashed its net loss by nearly 92% to INR 11.8 Cr in the financial year ended March 31, 2024 (FY24) from INR 142.6 Cr in FY23, on the back of increase in its top line and improvement in margins.

Operating revenue jumped 33.19% to INR 1,884.8 Cr during the year under review from INR 1,415.1 Cr in the previous year.

The sharp reduction in loss comes at a time when the startup is eyeing INR 2,500 Cr to INR 3,000 Cr initial public offering (IPO) at a valuation of INR 5,000 Cr to INR 8,000 Cr.

Founded in 2015 by Vaibhav Khandelwal and Abhishek Bansal, Shadowfax provides hyperlocal and on-demand deliveries to businesses. It counts ecommerce platforms like Flipkart and Meesho among its clients.

Shadowfax last raised $100 Mn in its Series E funding round, led by TPG NewQuest, in February this year.

In October, it was reported that the startup was in advanced discussions to raise INR 350 Cr to INR 400 Cr (around $45 Mn to $50 Mn) in a fresh funding round.

Overall, Shadowfax has raised a total funding of over $212 Mn till date and counts the likes of Flipkart, Mirae Asset Venture Investments (India) and Qualcomm among its backers.

It competes against the likes of Delhivery, Ecom Express, XpressBees, LoadShare, Ripple and Pickrr.

Zooming Into Expenses

The logistics major’s total expenses rose 21.9% to INR 1,908.3 Cr in FY24 from INR 1,565.5 Cr in the previous fiscal year. However, the growth in expenses was much slower than the increase in revenue.

Transportation & Distribution: This segment accounted for the largest share of Shadowfax’s expenses, with spending rising 24.72% to INR 966.2 Cr from INR 774.7 Cr in FY23.

Employee Benefits: The startup saw a 1.03% dip in its employee costs to INR 211.5 Cr in FY24 from INR 213.7 Cr in the previous year. This indicates that the startup might have reduced its headcount during the year under review.

Vehicle Operations: Expenses under the head jumped 35.85% to INR 394.5 Cr from INR 290.4 Cr in FY23.

Amid its IPO plans, Shadowfax has been on an expansion spree lately. For instance, it recently rolled out an AI-backed address intelligence system, SF Maps, designed to boost accuracy and efficiency in deliveries.

In October, Shadowfax partnered with ride-hailing major Uber to integrate its two-wheeler fleet with UberMoto bike taxi offering.