Shadowfax Technologies Ltd IPO

The company incurred losses aggregating to Rs.(118.82) million and Rs.(1,426.38) million in the Financial Years 2024 and 2023, respectively and negative cash flows from operating, investing and financing activities in certain periods. The company may continue to experience losses and negative cash flows in the future as the comapany anticipate increased expenses in the future.

The company significantly rely on a scaled and unified network infrastructure for its business operations, largely comprising 4,299 touchpoints, distributed across first and last mile centers and sort centers, and supported by more than 3.50 million square feet of operational space, and reaching 14,758 pin codes as of September 30, 2025. Any disruptions to our network may adversely affect the company's business operations, financial condition and cash flows.

The company relys on key commercial relationships with its clients. The company's largest client contributed 48.91%, 51.23%, 48.00%, 59.23%, and 59.52% of its revenue from operations for the six months period ended September 30, 2025, and September 30, 2024, and the Financial Years 2025, 2024, and 2023, respectively. The loss of any such key commercial relationships could adversely affect the company's business.

While its total revenue from operations grew from Rs.14,151.24 million in the Financial Year 2023 to Rs.24,851.31 million in the Financial Year 2025, the company's historical growth rates may not reliably forecast future performance and failures to manage growth or execute strategies effectively could impede the company's expansion and materially affect its business and future prospects.

Any inability to expand and grow the company's network infrastructure in a balanced manner could adversely affect its future growth, business operations, financial condition and cash flows.

The company rely on its crowdsourced network of delivery partners, comprising of 205,864 Average Quarterly Unique Transacting Delivery Partners as of September 30, 2025, with whom the company does not have any exclusive arrangements, for certain aspects of the company's business, and any change to the supply of delivery partners may disrupt its business operations, lead to additional losses and expose the company to additional risks.

Any mishandling of goods by its delivery partners may lead to operational inefficiencies and client dissatisfaction, which may affect the company's business, financial condition and results of operation.

The company depends on third-party franchisees for a portion of its last-mile deliveries, and any failures in their performance or disruptions in our business relationships with them could adversely impact the company's service quality, financial performance, and reputation.

Some of its clients choose cash on delivery as their preferred payment method. This practice involves the company acting as limited agents for the company's brands, merchants, and quick-commerce platforms, which presents operational challenges and potential risks regarding cash loss.

The company leased all its logistics facilities as of September 30, 2025 and some of the company's lease agreements may have certain irregularities. Failures to renew its leases or to locate desirable alternatives for the company's facilities could materially and adversely affect its business.