Shadowfax Delivers Profits In Q4

Shadowfax finally turned profitable in Q4. The logistics major swung to the black on the back of growing scale, AI-led automation, focus on vertical marketplaces, improving margins and grabbing a bigger pie of the third-party logistics (3PL) market. 

Here is quick snapshot of Shadowfax’s Q4 FY26 numbers:

• Net profit stood at ₹55.8 Cr against a loss of ₹9.9 Cr in Q4 FY25
• Operating revenue zoomed 73.6% YoY to ₹1,237 Cr
• Total expenses also soared 64.2% YoY to ₹1,197.7 Cr
• Adjusted EBITDA improved to ₹58 Cr versus ₹5 Cr in the year ago quarter

Scale Turns Profitable: The company’s express logistics vertical did most of the heavy lifting, fuelled by a 129% YoY jump in customer orders to 18 Cr. The hyperlocal arm also grew to 4.2 Cr orders, albeit at a slower pace. This indicates that Shadowfax is leaning more into categories where speed, frequency and route density support better margins.

Network Gets Denser: Operationally, too, the company expanded its footprint further. Its reach grew to 15,656 pin codes, while delivery partner base rose to 2.6 Lakh. Shadowfax added it cannibalised market share from “inefficient” players to dominate nearly 30% of the 3PL express market, compared to 8% four years ago.

CriticaLog Adds Depth: Shadowfax also noted that the recent acquisition of the platform gives the company another growth lever, especially in premium and time-sensitive logistics. With this, Shadowfax is not just chasing volume, but trying to build a more differentiated logistics stack around speed and higher-value deliveries. 

Dark Stores & AI: Going forward, Shadowfax plans to expand its dark store network from 15 to 100 in FY27 and increase coverage of Prime Large (bulky deliveries) to 10,000 pin codes by the end of ongoing fiscal. Simultaneously, it plans to use AI to improve slotting, picking and demand forecasting to lower overheads and improve speed.

As the logistics giant plans to sink around 10% of its ₹190 Cr capex target this year on dark store expansion, here is how Shadowfax fared on the financial front in Q4…

From The Editor’s Desk

India’s D2C 3.0 Moment

• Quick commerce is rapidly becoming a deeply embedded consumer habit in India. As per Inc42’s D2C 3.0 report, quick commerce players are expected to clock $68 Bn in GMV by 2031, up 8X from $8.3 Bn currently. 
• The report also highlights that food and grocery is expected to emerge as the fastest growing ecommerce category between 2026 and 2031, with a CAGR of 28%, surpassing electronics (18%) and fashion (20%). 
• Industry experts believe that the segment is now moving towards premiumisation and high-AOV categories to capture a bigger wallet share. As a result, brands are working more on metrics like inventory accuracy, gig worker utilisation and dark store math.

Ex-Peak XV MDs Float New Fund

• Former managing directors of the VC giant – Ashish Agrawal, Ishaan Mittal, and Tejeshwi Sharma – have launched Mettle Capital, a new India-focused investment firm. The trio is aiming to raise $350 Mn to $400 Mn for the maiden fund. 
• The fund will target Series A and B rounds, alongside select seed investments, in startups across AI, deeptech, and consumer internet. Already in talks with LPs in the US, Europe, and Asia, Mettle is looking to close the fund within the next quarter.
• This comes a few months after the trio quit Peak XV Partners to launch a new fund. While Agrawal was associated with the firm since 2013, Mittal and Sharma were with the VC major since 2016 and 2018, respectively.

EaseMyTrip Eyes ₹500 Cr

• The listed travel tech company’s board has approved a proposal to raise up to ₹500 Cr via a rights issue. It did not disclose the eligible shareholders or the purpose behind the fundraise.
• Founded in 2008, EaseMyTrip is an online travel aggregator that offers air ticketing, hotel booking and holiday packages. In Q3 FY26, the company’s profit declined 90% YoY to ₹3.4 Cr, while operating revenue remained almost flat YoY at ₹151.7 Cr. 
• The fundraise comes as the stock has been on a downward trajectory due to its weak financial performance, top-level churn and founders pledging their shares. As a result, institutional investors have been dumping the company’s shares. 

ED Freezes Gameskraft Assets

• The ED has frozen assets worth ₹526.49 Cr in connection with its ongoing money laundering probe into the gaming platform. This follows the agency conducting searches across Bengaluru and Delhi NCR between May 7 and 13.
• This comes days after ED arrested Gameskraft three cofounders in connection with the case. Founded in 2017, Gameskraft was an RMG platform which operated apps like RummyCulture and Playship. It used to have a user base of nearly 3 Cr.
• ED alleges that Gameskraft pitted players against bots, laundered proceeds of crime via investments in foreign entities, and bypassed geolocation restrictions to offer its services in states like Andhra Pradesh and Tamil Nadu, where RMG is banned. 

Dhruva Space Bags ₹105 Cr Grant

• The spacetech startup has secured a $10.9 Mn grant from the Centre’s Research, Development & Innovation Fund for its ‘Project Garud’.
• The initiative aims to build a production-ready, 500 kg-class satellite platform for large-scale deployments of constellations across telecom and national security use cases. It will also support GEO and MEO-class missions in the future as well.
• Founded in 2012, Dhruva Space provides end-to-end space engineering solutions, including small satellites, ground stations and mission support. It has raised $22 Mn to date and is eyeing a piece of  India’s spacetech sector, projected to reach $77 Bn by 2030.

Inc42 Markets

Inc42 Startup Spotlight

Can Thread Factory Fix The Apparel Sourcing Chaos?

India’s B2B apparel market is highly fragmented. As a result, small store owners struggle with inconsistent pricing, trend blindness and rigid minimum orders. Enter Thread Factory, a startup that is helping small fashion retailers connect directly with manufacturers.

Cutting Out The Middlemen: Founded in 2023, Thread Factory links small retailers to over 100 manufacturers through an algorithm-driven platform. Retailers can discover trending styles across kurtis, dresses and co-ord sets from a catalogue of 10,000+ designs without dealing with wholesale unpredictability.

Focus On Flexibility: The startup’s edge lies in solving the classic small-retailer pain point: high minimum order quantities (MOQs). Thread Factory offers low MOQs, doorstep sampling, verified quality checks and dedicated support, letting store owners test demand without over-committing inventory or capital.

Early Traction: Since launch three years ago, Thread Factory claims to have onboarded over 1,000 retailers, listed 2,000+ products and gone live with 40 brands. It is targeting the Indian B2B apparel sourcing segment, which is projected to become a $13 Bn opportunity by 2034. So, can Thread Factory help formalise India’s apparel supply chain?

Infographic Of The Day

A new wave of D2C brands is building for modern parents balancing work, convenience, clean ingredients and personalised nutrition. From toddler snacks to travel-friendly meals, Indian startups are now targeting every stage of a child’s growth journey…

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