Shadowfax IPO: CEO Reveals Profitability Secrets Amidst Rapid Growth

• Shadowfax Technologies, a Bengaluru-based logistics provider, is preparing for a ₹1,907-crore IPO next week, driven by strong growth in e-commerce and hyperlocal deliveries.
• The company's growth rate accelerated to 68% in the first half of the current fiscal year, up from a 32% CAGR previously, with e-commerce and quick commerce platforms fueling this expansion.
• Shadowfax achieved profitability in FY25 and has maintained it, attributing success to value-added services like reverse logistics and open-box deliveries, which contribute 40% of its express business.
• Diversification is evident as the top five customers now account for 74% of revenue, down from 88% a year ago, with D2C brands being the fastest-growing segment.
• The company emphasizes capital efficiency and operating leverage, delivering 10 consecutive quarters of profitability and expanding EBITDA margins to nearly 2.9%.

Why It Matters: Shadowfax is set for its IPO, showcasing strong growth, sustained profitability, and strategic diversification.