·  Shadowfax to raise Rs 2,000 crore via IPO with board approval for fresh issue and offer for sale.

·  FY24 performance improved with revenue up 33.2% and net loss reduced by 91.7%.

·  Company targets Rs 8,500 crore valuation, backed by investors like Flipkart and Mirae Asset.

Shadowfax Technologies, a Bengaluru-based logistics startup, has got board nod to raise as much as  Rs 2,000 crore (around $232 million) through an Initial Public Offering (IPO) later this year.

The IPO is to consist of a fresh issue of equity of  Rs 1,000 crore and an offer for sale (OFS) of  Rs 1,000 crore, as specified in Registrar of Companies (RoC) filings.

Earlier this month, Shadowfax submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) via the confidential pre-filing route a route increasingly favored by contemporary startups in order to preserve discretion in the initial regulatory review process.

Shuruaat by Abhishek Bansal, Vaibhav Khandelwal, Praharsh Chandra, and Gaurav Jaithliya in 2015, Shadowfax has made a name for itself as a one of the key players in the last-mile delivery segment catering to various clients such as e-commerce websites, direct-to-consumer (D2C) brands, and hyperlocal logistics companies. Its services range from reverse logistics, time-sensitive pickup and delivery, and on-demand logistics across important segments like food, grocery, and pharmaceuticals.

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The IPO plan, approved at a board meeting on June 24, is being backed by leading investment banks: ICICI Securities, JM Financial, and Morgan Stanley, which are guiding the company through the public issue.

As part of its preparations for listing on the stock market, Shadowfax has also reshuffled its board to meet regulatory standards and enhance corporate governance. Its co-founders Praharsh Chandra and Gaurav Jaithliya have been appointed as whole-time directors, while former IPS officer Dinkar Gupta has been named as an independent director. The company has also added industry veterans like Bijou Kurien, Ruchira Shukla, and Pirojshaw Sarkari to its board to enhance its oversight and tap strategic expertise.

Shadowfax has also delivered a sharp fiscal reversal in FY24. The net loss of the company reduced by 91.7% to  Rs 11.8 crore from  Rs 142.6 crore last fiscal year. Operating revenue, on the other hand, grew 33.2% to  Rs 1,884.8 crore from  Rs 1,415.1 crore in FY23.

The startup is said to be eyeing a post-IPO valuation of  Rs 8,500 crore (~$1 billion), a pretty long way from its previous estimated valuation of  Rs 5,981 crore after raising $16.8 million in funding, co-led by Mirae Asset and Nokia Growth Partners in Series F.

Since its inception, Shadowfax has raised more than $246 million, thanks to some significant investor names such as Eight Roads Ventures, Flipkart, NewQuest Asia, Qualcomm, and more.