Shadowfax Expands Employee Ownership with Fresh Stock Options

Team Shadowfax
Preeti Bali / 8:04 am / May 22, 2024

Shadowfax, a prominent logistics company, has announced the expansion of its employee stock ownership program (ESOP) through its existing ESOP 2016 plan. This move underscores the company’s commitment to attracting, motivating, and retaining top talent within its management ranks.

New Stock Options Enhance Employee Engagement

The company’s board of directors recently approved an amendment to the ESOP 2016 plan, authorizing the issuance of 20,229 new stock options. These options will be applicable to Shadowfax, its subsidiaries, and associated entities, as revealed by regulatory filings accessed from the Registrar of Companies.

Boosting Employee Value and Long-Term Growth

Each ESOP option will eventually convert into equity shares, aligning employee interests with the company’s long-term success. According to estimates from Fintrackr, the newly added stock options hold a value of approximately Rs 61 crore ($7.3 million), further solidifying Shadowfax’s dedication to employee ownership.

Building a Strong Workforce for the Future

This initiative follows Shadowfax’s successful Series E funding round, which secured $100 million led by TPG NewQuest and included secondary financing. The company’s strategic use of ESOPs reflects its commitment to fostering a culture of ownership and shared success among its employees.

Delivering Efficiency and Expansion Across India

Shadowfax has established itself as a leader in the logistics industry, renowned for its extensive network, competitive pricing, and industry-leading turnaround times (TAT). The company currently operates a fleet of 2,000 daily trucks and utilizes more than 200 airline lanes to connect over 3,000 last-mile hubs, ensuring efficient delivery across the country.

Expanding Reach and Network Connectivity

Shadowfax boasts an impressive network of 125,000 active delivery partners and 3.5 million registered users. The company’s recent expansion into Port Blair further strengthens its reach, extending its service area to over 15,000 pincodes. With a clear vision for the future, Shadowfax aims to achieve 100% pincode coverage by March 2025.

Demonstrating Financial Growth and Stability

Data compiled by startup intelligence platform TheKredible reveals Shadowfax’s financial growth trajectory. The company’s revenue from operations in FY23 reached Rs 1,415.40 crore, a significant increase compared to Rs 990 crore in FY22. Furthermore, Shadowfax has shown progress in managing losses, with FY23 figures at Rs 141 crore – a decrease from Rs 176 crore in the previous fiscal year. The company’s audited financial statements for FY24 are yet to be filed.


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