Shadowfax Takes Confidential Route to File Paper for ₹2,500 Crore IPO: Report
In a significant development, Flipkart-backed logistics startup Shadowfax has reportedly filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) under the confidential route for an initial public offering (IPO) worth ₹2,000-2,500 crore. This move marks another milestone for the company, which has been making waves in the logistics sector with its innovative approach to last-mile delivery.
According to a report by Moneycontrol, Shadowfax’s IPO is expected to be one of the largest in the technology sector this year. The company’s decision to file its DRHP under the confidential route indicates that it is seeking to raise funds to fuel its growth plans and expand its operations further.
Shadowfax’s IPO is not the only one in the pipeline. Reportedly, other companies like Meesho and Lenskart will also file their IPOs later this year. Meesho, a social e-commerce platform, has been making significant strides in the e-commerce space, while Lenskart, a leading eyewear retailer, has been expanding its presence both online and offline.
Shadowfax, which was founded in 2015, has been growing rapidly in recent years, thanks to its innovative approach to logistics. The company uses a network of independent contractors to deliver packages, which allows it to offer faster and more flexible delivery options to customers. This approach has helped Shadowfax to differentiate itself from traditional logistics players and attract clients from various sectors, including e-commerce, pharmaceuticals, and food delivery.
In recent years, Shadowfax has expanded its operations significantly, both in terms of geography and services offered. The company now operates in over 2,000 cities and towns across India and offers a range of services, including same-day delivery, next-day delivery, and express delivery.
Shadowfax’s financial performance has also been impressive. In the fiscal year 2020-21, the company reported a revenue of ₹1,254 crore, with a growth rate of 53% YoY. Its loss before tax also narrowed down to ₹214 crore, compared to ₹341 crore in the previous year.
The company’s decision to file its IPO under the confidential route is seen as a strategic move to raise funds for its growth plans. The confidential route allows companies to file their DRHP with SEBI without publicly disclosing the details of the IPO, which can be beneficial in a competitive market.
Industry experts believe that Shadowfax’s IPO will be well-received by investors, given the company’s strong financial performance and growth prospects. “Shadowfax has a unique business model that has resonated well with customers and investors alike,” said an analyst with a leading brokerage firm. “The company’s IPO is likely to be oversubscribed, given its strong financials and growth prospects.”
Shadowfax’s IPO is expected to be a significant event in the Indian startup ecosystem, given the company’s reputation as a leader in the logistics sector. The company’s decision to file its IPO under the confidential route is seen as a sign of its confidence in the market and its growth prospects.
In conclusion, Shadowfax’s decision to file its DRHP with SEBI under the confidential route for an IPO worth ₹2,000-2,500 crore is a significant development in the Indian startup ecosystem. The company’s strong financial performance and growth prospects make it an attractive investment opportunity for investors. As the company looks to expand its operations further, its IPO is likely to be a major milestone in its journey.
