Flipkart Plans ₹700-750 Crore Stake Sale In Shadowfax

Walmart-backed e-commerce giant Flipkart has initiated steps to sell a portion of its stake in logistics startup Shadowfax Technologies, estimated to be worth Rs 700-750 crore, Moneycontrol reported.

This planned divestment is the second time Flipkart is reducing its holding in the company and is part of a broader monetisation approach that has generated over Rs 2,500 crore in returns from previous exits, including BlackBuck and Aditya Birla group companies.

The move reflects Flipkart’s increasing focus on liquidity generation, as the company aims to cut monthly cash burn, which had been around $40 million a few months ago, while avoiding external fundraising and deferring its initial public offering plans.

The sale could occur as part of a larger block deal, possibly coinciding with the expiry of a six-month lock-in period, and may be executed at a discount of 2-4% from the current market price, according to sources.

Flipkart first invested in Shadowfax in 2019 and participated in subsequent funding rounds.

Shadowfax has grown into a key last-mile delivery partner for Flipkart, managing hyperlocal and e-commerce shipments during peak demand periods and supporting several other businesses that rely entirely on third-party logistics solutions.

Regulatory filings, including Shadowfax’s updated draft red herring prospectus (UDRHP), indicate that Flipkart originally held around 14% of the company, approximately 74.9 million shares.

The company had already reduced its stake to about 8% (42.6 million shares) through an offer-for-sale (OFS) during Shadowfax’s IPO. That earlier sale earned Flipkart roughly Rs 400 crore, more than double its original investment of Rs 140 crore.

This upcoming stake sale is expected to provide Flipkart with additional gains while continuing its strategic approach to portfolio monetisation.

By leveraging investments in high-growth logistics partners like Shadowfax, the e-commerce major is consolidating its financial position, reducing operational risk, and preparing for future business expansion without relying on external capital injections.