Shadowfax Technologies Limited is a technology-led third-party logistics (3PL) company that focuses on enabling digital commerce deliveries across India. Founded in 2015, the company was built to address the growing need for fast, flexible, and scalable logistics solutions as e-commerce, quick commerce, and on-demand services expanded in the country.

Over the years, Shadowfax has evolved from a last-mile delivery player into a broader logistics platform offering end-to-end solutions. Its operations now span first-mile, middle-mile, and last-mile delivery, covering thousands of cities and pin codes. The company primarily serves enterprise clients, including large e-commerce marketplaces, D2C brands, quick commerce platforms, food delivery companies, and mobility-focused businesses.

What differentiates Shadowfax from traditional logistics providers is its asset-light, technology-first approach. Instead of owning a large delivery fleet, it relies on a crowdsourced network of delivery partners, coordinated through proprietary technology systems. This model allows the company to scale rapidly while keeping fixed costs relatively low.

Key Services Offered

Shadowfax offers a wide range of logistics services designed to meet the operational needs of modern digital businesses.

A major part of its operations is express logistics, which includes forward parcel deliveries for e-commerce orders, reverse pickups for returns, and exchange deliveries. Reverse logistics is particularly important in India’s e-commerce ecosystem, where return rates are structurally high.

The company also has a strong presence in hyperlocal and quick commerce deliveries, enabling intracity and time-sensitive deliveries such as groceries, food, and daily essentials. These services focus on speed and reliability, often requiring same-day or rapid fulfillment.

In addition, Shadowfax provides value-added logistics services such as doorstep quality checks, handling of large or bulky parcels, same-day and next-day delivery options, and critical or time-sensitive logistics. These specialised services allow the company to cater to complex delivery requirements and earn higher realisation per shipment compared to standard parcel deliveries.

Shadowfax operates on a service-based revenue model. It earns revenue by charging enterprise clients for logistics and delivery services, typically on a per-shipment or per-service basis. Pricing depends on factors such as delivery distance, shipment size, service level, and turnaround time.

The company’s largest revenue contribution comes from express logistics, where it handles forward deliveries, returns, and exchanges for e-commerce and D2C brands. Each leg of delivery is monetised, making reverse logistics a revenue stream rather than a cost burden.

Hyperlocal and quick commerce deliveries form another important revenue stream. While per-order pricing in this segment may be lower, the model benefits from high order density and frequent repeat volumes, especially in urban markets.

A key feature of Shadowfax’s business model is its asset-light execution. Delivery partners are paid per task, converting a large portion of operating costs into variable expenses. Shadowfax retains a margin between what it charges clients and what it pays delivery partners, after accounting for technology, sorting, and operational overheads.

Technology plays a central role in improving margins. Proprietary systems manage order allocation, route optimisation, delivery partner matching, and address intelligence. As shipment volumes grow, these technology costs scale efficiently, creating operating leverage and supporting profitability at higher volumes.

Fresh Issue: As per the offer documents, the Net Proceeds from the Fresh Issue are proposed to be used for:

• Capital expenditure for network infrastructure
• Lease payments for new first-mile centres, last-mile centres, and sort centres
• Branding, marketing, and communication costs
• Unidentified inorganic acquisitions and general corporate purposes

Offer for Sale (OFS): The company does not receive OFS proceeds. They go to the selling shareholders, after expenses and taxes, as applicable.

(Source: Chittorgarh)

What Stands Out:

• Clear shift to profitability: Losses in earlier years have turned into positive PAT, with improvement continuing into FY26.
• EBITDA recovery is strong: Margins have moved from negative to positive, showing better cost control and operating leverage.
• Balance sheet has strengthened: Net worth has increased sharply, supporting expansion without excessive leverage.
• Growth is more disciplined now: Revenue has normalised after a strong FY25, indicating a focus on sustainable margins.

Key Strengths

• Large crowdsourced delivery partner network enables fast scaling with low capital intensity.
• Strong technology platform improves delivery efficiency, accuracy, and customer experience.
• Diversified client base across e-commerce, quick commerce, food delivery, and D2C brands.
• Pan-India presence with multiple service offerings supports long-term growth.

Key Risks

• Operates in a highly competitive and margin-sensitive logistics industry.
• Heavy dependence on gig delivery partners exposes the business to cost and availability risks.
• Revenue concentration with large enterprise clients can impact stability if contracts are lost.
• Rapid expansion increases execution and operational complexity.

Shadowfax Technologies Limited represents a new-age logistics platform built for India’s digital economy. Its asset-light, technology-driven model has enabled rapid scaling across multiple delivery categories while keeping capital intensity relatively low.

The company’s financial trajectory shows a clear shift from growth at any cost to growth with improving profitability and balance sheet strength. While risks related to competition, margins, and execution remain, Shadowfax’s scale, technology, and diversified service offering position it well to benefit from the long-term expansion of e-commerce and quick commerce in India.

Investors who wish to participate can apply via clicking on Arham Wealth IPO link.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. | This article is for informational and educational purposes only and does not constitute investment advice, an offer, or a recommendation to buy or sell securities. The information is based on the Red Herring Prospectus and publicly available sources. Investors should read the Red Herring Prospectus carefully and consult their financial advisor before making any investment decisions. | Name of member: Arham Wealth Management Private Limited | SEBI Registration: INZ000189034, DP: IN-DP-456-2020 | Read Full Disclaimer: https://www.arhamwealth.com/disclaimer

Source: RHP