Flipkart has reportedly begun the process of selling a part of its stake in logistics company Shadowfax Technologies in a transaction that could be worth around Rs 700 crore, according to a Moneycontrol report. The move is part of the Walmart-owned e-commerce company’s ongoing efforts to monetise investments in its startup portfolio.
According to the report, Avendus Capital has been appointed to manage the proposed secondary stake sale. The transaction is currently in its early stages, with discussions underway with prospective investors.
The report states that Flipkart is not looking for a complete exit from Shadowfax. Instead, it plans to sell only a portion of its holding while continuing to remain an investor in the company. The proposed sale is estimated to value Shadowfax at around Rs 8,500 crore.
Flipkart first invested in Shadowfax in 2018, strengthening its logistics ecosystem as the delivery platform expanded its presence across e-commerce and last-mile fulfilment. Since then, Shadowfax has grown into one of India’s leading logistics startups, serving sectors such as e-commerce, quick commerce, healthcare and direct-to-consumer (D2C) brands.
The reported transaction comes amid increasing activity in India’s startup investment ecosystem, where strategic investors and venture capital firms are seeking partial exits from mature portfolio companies through secondary share sales. Such deals allow early investors to unlock value while enabling new investors to gain exposure to high-growth businesses.
FAQs
- Why is Flipkart selling its stake in Shadowfax?
According to reports, Flipkart is looking to monetise part of its investment in Shadowfax as part of its broader portfolio monetisation strategy.
- How much stake is Flipkart expected to sell in Shadowfax?
Reports suggest Flipkart may sell shares worth around ₹700 crore through a secondary transaction.
- What is Shadowfax?
Shadowfax is an Indian logistics and last-mile delivery platform that serves e-commerce, quick commerce, healthcare and D2C brands.
- Is Shadowfax planning an IPO?
Yes. Shadowfax has reportedly filed confidential draft papers for an IPO and is expected to raise around ₹2,000 crore.
- Has Flipkart confirmed the stake sale?
No. As of now, the reported transaction has not been officially confirmed by either Flipkart or Shadowfax.
