Shadowfax Gets Board Nod To Raise INR 2,000 Cr Via IPO

SUMMARY

Shadowfax’s board gave its nod for the initial public offering on June 24

The IPO will comprise a fresh issue of equity shares worth INR 1,000 Cr and an offer for sale worth INR 1,000 Cr

Earlier this month, the startup filed its DRHP with the SEBI for an IPO through the confidential pre-filing route

Logistics major Shadowfax’s board approved a proposal to raise up to INR 2,000 Cr ($231.8 Mn) during its upcoming initial public offering (IPO) in June.

The board approved the company’s IPO plans during a meeting on June 24.

As per the company’s filings with the MCA, Shadowfax’s public issue will comprise a fresh issue of equity shares of up to INR 1,000 Cr and an offer for sale (OFS) of up to INR 1,000 Cr. The startup is looking to make its market debut in the latter half of this year.

Inc42 has reached out to ShadowFax for comments on the development. The story will be updated based on their response.

Entrackr reported the development first.

Founded in 2015 by Abhishek Bansal and Vaibhav Khandelwal, Shadowfax offers last-mile delivery services to ecommerce platforms and D2C brands. It also provides value-added services including reverse logistics, parcel exchange, and quick deliveries.

The startup received the board’s approval to turn into a public entity in March this year.

Subsequently, earlier this month, Shadowfax filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) through the confidential pre-filing route. The logistics major has appointed ICICI Securities, JM Financial, and Morgan Stanley as bankers for the public issue.

In the run up to its IPO, the company recently strengthened its board. Just a day ago, Shadowfax appointed chief business officer (CBO) Praharsh Chandra and head of business strategy Gaurav Jaithlia as whole-time directors. Alongside, Dinkar Gupta, a retired IPS officer, was roped in as a non-executive independent director on the board.

Since its inception, the logistics services startup has raised over $212 Mn. It counts Flipkart, Mirae Asset Venture Investments (India), and Qualcomm among its backers. The Bengaluru-based startup also secured a funding of INR 65.4 Cr from its cofounders Khandelwal and Bansal in March this year.

On the financial front, Shadowfax trimmed its net loss by nearly 92% to INR 11.8 Cr in FY24 from INR 142.6 Cr in the previous fiscal. Operating revenue jumped 33.19% to INR 1,884.8 Cr during the fiscal under review from INR 1,415.1 Cr in FY23.

The development comes at a time when numerous startups have been making headway with their public listing plans.

Earlier today, edtech major PhysicsWallah received SEBI’s approval for its IPO within four months of filing the draft red herring prospectus (DRHP) via the confidential pre-filing route.

Snapdeal parent AceVector also opted for the confidential route to file its draft red herring prospectus (DRHP) earlier this month for an INR 500 Cr IPO.