Walmart-backed e-commerce company Flipkart has initiated plans to sell part of its stake in logistics startup Shadowfax Technologies in a transaction valued at approximately ₹700–750 crore, according to people familiar with the development.
The proposed transaction marks Flipkart’s second stake dilution in Shadowfax and represents the latest in a series of portfolio monetisation initiatives. Through exits from BlackBuck, Aditya Birla Group companies and other investments, the company has already generated more than ₹2,500 crore (around $265 million). At the same time, Flipkart has significantly reduced its monthly cash burn from nearly $40 million a few months ago and has increasingly relied on portfolio exits to unlock liquidity while avoiding external fundraising and postponing its initial public offering (IPO) plans.
“Flipkart may sell shares as early as the end of this month around when the six-month lock-in expiry ends as part of a larger block deal,” one of the persons cited above said.
According to another source, the transaction could take place at a 2–4 percent discount to the current market price.
Sources said that Flipkart will likely sell shares worth ₹700–750 crore as part of a larger block deal involving several early investors in Shadowfax. The transaction is expected to take place over the coming weeks, with investors such as Mirae, Eight Roads, Qualcomm and TPG NewQuest also likely to participate.
However, Flipkart will not completely exit its investment in Shadowfax. The company currently owns 42.6 million shares, representing an 8 percent stake in the logistics startup. It plans to sell approximately 33.7 million shares, equivalent to around 6 percent, while retaining nearly 2 percent ownership after the transaction, according to sources.
The 33.7 million shares represent the only portion of Flipkart’s holding that becomes eligible for sale after the six-month lock-in period expires at the end of July. Meanwhile, the company must continue holding the remaining 8.9 million shares because they form part of the minimum promoter contribution.
Under the Securities and Exchange Board of India (SEBI) regulations, the minimum promoter contribution requires a specified portion of shares to remain locked in after an IPO. The requirement ensures long-term commitment from key shareholders and reassures public investors that major stakeholders cannot immediately exit after the company’s stock market debut.
These shares remain subject to a mandatory 18-month lock-in period, during which shareholders cannot sell them. Furthermore, when promoters do not hold sufficient shares to meet the regulatory requirement, eligible existing shareholders can contribute part of their holdings without assuming promoter status. Regulatory filings show that Flipkart, along with Mirae, Eight Roads and TPG NewQuest, served as one of these contributing shareholders in Shadowfax.
Flipkart’s planned Shadowfax stake sale highlights its continued focus on unlocking value from strategic investments while improving liquidity ahead of its eventual IPO. Even after the proposed transaction, the company will retain a minority stake in Shadowfax, allowing it to maintain exposure to the fast-growing logistics startup while strengthening its financial position.
