Shadowfax’s IPO Stumble: When 74% of Your Revenue Comes from Four Clients

A logistics IPO meant to signal India’s e-commerce boom stumbled on its first day, as investors questioned whether the company’s survival hinges on just four clients.

Shadowfax’s shares fell 9% on listing, valuing the firm at 64.7 billion ($706.58 million). The drop reflects growing unease about its business model: 74% of revenue comes from Flipkart, Meesho, Zepto, and Zomato.

For a mid-sized e-commerce vendor relying on Shadowfax for deliveries, this concentration poses tangible risks. A single client outage—say, Zomato’s food delivery system crashing during peak hours—could cascade into delivery delays, lost orders, and reputational damage for dependent businesses.

The firm raised ₹19.07 billion ($208.24 million) via its IPO, with founders retaining 20% ownership. Revenue grew 68% year-over-year to 18.06 billion ($197.12 million) in the six months ending September 2025.

However, the funds will be allocated to infrastructure expansion, lease costs, and acquisitions—moves that may take years to offset client concentration risks.