India’s Shadowfax Slips On Listing, As Client Concentration Spooks Investors

Shadowfax IPO slips 9% on listing day as investors worry over 74% revenue reliance on few e-commerce giants. What it means for India's logistics futu
Matilda
India’s Shadowfax Slips On Listing, As Client Concentration Spooks Investors
Why Did Shadowfax Stock Fall on Listing Day? Shadowfax shares dropped 9% in their market debut, closing at ₹112.60 against an issue price of ₹124. The stumble wasn't about demand—the IPO was subscribed nearly three times over. Instead, investors zeroed in on a structural vulnerability: nearly three-quarters of the logistics firm's revenue comes from just four major clients. For retail investors weighing an IPO bet, that concentration risk proved too steep despite India's booming e-commerce delivery market. The Bengaluru-based company raised ₹1,907 crore ($208 million) in a mix of fresh issuance and secondary share sales, yet its ₹6,470 crore market cap barely exceeded its last private valuation from early 2025. Credit: Google The Client Concentration Conundrum Dig into Shadowfax's prospectus, and the numbers tell a cautionary tale. Flipkart, Meesho, Zepto, and Zomato collectively drive approximately 74% of the company's annual revenue. While these partnerships powered …