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India’s Shadowfax slips on listing, as client concentration spooks investors

Shadowfax stumbled in its market debut, with shares falling as investors weighed concerns about the logistics firm’s heavy reliance on a handful of large e-commerce clients. The company raised about ₹19.07 billion (about $208.24 million) in its initial public offering.

The shares fell about 9% from the offer price of ₹124 to ₹112.60 on Wednesday, valuing the Bengaluru-based logistics firm at roughly ₹64.7 billion (about $706.58 million) on debut, roughly matching its last private valuation of close to ₹60 billion (roughly $655.01 million) in early 2025. The offering, priced in a band of ₹118–124 per share, combined a fresh issue with an offer-for-sale by existing shareholders and was subscribed nearly three times over.

Founded in 2015, Shadowfax operates as a third-party logistics provider, handling last-mile and intra-city deliveries for e-commerce marketplaces, quick-commerce platforms and consumer internet companies across India. The company counts e-commerce players including Flipkart and Meesho, as well as quick-commerce and food delivery platforms Zepto and Zomato, among its largest clients, which together account for about 74% of its revenue, according to its prospectus. Its key shareholders include Flipkart, TPG NewQuest, Qualcomm, and the World Bank-backed International Finance Corporation.

Shadowfax’s listing comes as the e-commerce and quick-commerce sectors continue to expand in India, driven by rising internet penetration, urbanization, and demand for faster deliveries. Platforms offering same-day or rapid fulfillment have increasingly leaned on third-party logistics providers to scale nationally, placing companies like Shadowfax at the centre of the country’s consumer internet supply chain.

The offering includes shares sold by some early and institutional backers, including Flipkart, Eight Roads Ventures, Nokia Growth Partners, Qualcomm, and Mirae Asset. Founders Abhishek Bansal and Vaibhav Khandelwal are not participating in the offer-for-sale and will together retain about 20% of the company after listing.

“We don’t see this IPO as a destination,” said Bansal, Shadowfax’s co-founder and CEO, during its IPO launch ceremony in Mumbai. “We are not building this for the next quarter. We are building this for the next century. Today, we don’t ring a bell. We are waking up to a new set of possibilities.”

In the six months ended September 2025, Shadowfax reported revenue from operations of ₹18.06 billion (about $197.12 million), up 68% from the same period a year earlier, per its prospectus. The company’s profit more than doubled year over year to ₹210.37 million (around $2.30 million), reflecting higher delivery volumes, though earnings remain closely tied to demand from a small group of large platform clients.

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Shadowfax plans to use proceeds from the fresh issue to fund capital expenditure for its network infrastructure, pay lease costs for new first-mile, last-mile and sorting centres, and meet branding, marketing and communication expenses, its prospectus said. A portion of the proceeds will also be kept for inorganic acquisitions and general corporate purposes.

The company currently operates around 3.5 million square feet of logistics infrastructure across 14,700 pin codes nationwide.

Shadowfax’s IPO comes more than three years after its larger rival, Delhivery, went public in 2022. Delhivery reported revenue of about ₹89.3 billion (around $974.84 million) in the year ended March 2025, with year-over-year growth in the low teens, underscoring the contrast with Shadowfax’s faster expansion.

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This tiny, magnetic e-reader could stop you from doomscrolling

It was love at first sight. It felt like scouring the mall, dipping in and out of sprawling department stores in search of a specific, elusive item, only to finally find what you’re looking for. Only, I didn’t even know I was searching for something like the Xteink X3, because I never dared dream of something so delightful: a tiny, MagSafe-compatible e-ink reader that could attach to my iPhone like a Pop Socket.

This was it. My life would change forever. I would get my hands on the Xteink X3, and I would stop doomscrolling forever. I would read more books than ever before… which is saying something, since – brag – I read at least 50 books a year. But – not a brag – I probably spend even more time on social media than I do reading. I know that I feel generally less anxious when I limit my social media time, but alas, the siren song of TikTok beckons me. What if instead of opening social media, I could just flip my phone over and read on a tiny, Kindle-like e-ink screen? Could this $80 gadget fix me?

I’ve tried reading books (… or downloads from AO3) on my phone, immersing myself in a fictional world, rather than posts from the president in which he threatens to obliterate an entire country. But something about looking at my phone, where I’m constantly tempted to open Instagram to see whatever Reel someone sent me, doesn’t quite soothe me the way that a book or an e-ink device like a Kindle does.

I was so excited for my X3 to arrive that I constantly refreshed the tracking link until finally, it was delivered. Even though I had meticulously compared the dimensions of the X3 to my iPhone 16, or my Pop Socket wallet, I still worried it might not fit – the previous model, the Xteink X4 (basically the same device but a little bigger) only fit on larger phones like the iPhone Pro Max line. But sure enough, the X3 magnetically attached to the back of my phone like it was custom-made to fit.

My X3 came in the mail about two hours before I had to leave to go to a Phillies game, so I rushed to load books onto it, because I thought it would be really funny to take photos in which I read “The Power Broker” in a crowded baseball stadium. Behold, my handiwork:

The XTeink X3 watches as the Phillies kick off a ten-game losing streakImage Credits:TechCrunch

For the first several days that I had the X3, I carried it with me on the back of my phone. This made me a bit nervous, though, since I’m used to having a Pop Socket wallet, which means I’ve gotten in the habit of leaving home without my actual wallet. But I found that I used the X3 just as much when I carried it in my purse or pocket, rather than attaching it to my phone. I’m still not sure if I’ll keep this setup, or if I’ll start actually using a real wallet so that I can attach the ereader, but for now, that’s what has felt most natural. Plus, my X3 shipped with a very compact, cute, magnetic case, which perfectly protects the device and its screen and makes it a little easier to hold. At just $9 for the case, I’d recommend getting one. The case can also magnetize to your phone, though it feels a bit less secure than attaching your X3 alone.

Over my two weeks of testing, I did find that the X3 helped me read more. If you’re in line at a coffee shop, or waiting for the bus, you can just pull out the ereader instead of opening Instagram. I didn’t find the small screen difficult to read on, either. But just buying the device won’t change your habits – you have to remember that you have a 3.7 inch screen in your pocket that can fit hundreds of books.

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A Pop Socket wallet and the Xteink X3, side by sideImage Credits:TechCrunch

The Xteink X3 is pretty close to being the device of my dreams, but it’s not quite there yet. The firmware that the device comes with is pretty clunky – not unusable, but not exactly intuitive. I expected this, since the Xteink Reddit community was buzzing about CrossPoint, a community-made, free, open source firmware. The process of downloading CrossPoint was a bit intimidating as someone who writes words, rather than code – but with the instructions on CrossPoint’s website (and a few videos), it was easy enough. I encountered some difficulties at first, but then I realized it was because I was trying to download the X4 firmware onto my X3, so… my bad. You probably won’t even need the YouTube videos!

When you start loading books and open source firmware onto your X3, you’ll notice another divisive aspect of the device: it doesn’t have a USB-C port, unlike the X4. Instead, it uses a magnetic charger. Yes, it’s annoying to have yet another charging cable specifically for this one device, but I don’t care that much. After two weeks of consistent use, my X3 has dropped from a 100% charge to a 96% charge, so I can’t imagine I’ll be using that magnetic charger too often. You don’t even need the cord to add new books to your ereader – you can transfer files over Wi-Fi from your phone or computer (I wouldn’t call the process user-friendly, but I was able to figure it out without Googling anything).

Speaking of loading books, that’s another drawback. The majority of what I read on my Kindle comes from Libby, which is my favorite app (#notsponsored). The Libby app allows you to easily borrow ebooks or audiobooks from your library and send them to your Kindle. But you can’t get those ebooks (legally) onto an Xteink ereader, since libraries use protected versions of .epub files that deter users from copying them (you also can’t read books you buy from Amazon’s ebook store on non-Amazon devices, because capitalism). This lack of compatibility is a drawback, but it also makes the device feel unique – it’s a “dumb” device that has no apps and no touch screen, which feels startlingly refreshing in an era of AI-enabled refrigerators.

You can add your own screen savers, which I have clearly had too much fun withImage Credits:TechCrunch

It’s not hard to find interesting .epub files to load onto the X3, even if you can’t access your Kindle library or Libby. A lot of great books are in the public domain, which means that they’re no longer subject to copyright and can be downloaded for free (I’ve weirdly never read “Pride and Prejudice,” so the time is now). A few months ago, I bought the entire .epub catalogs of sci-fi writers Charlie Jane Anders and Annalee Newitz as part of a charity fundraiser, which should keep me busy for quite a bit. If you wanted to, you could even turn online articles or blogs into .epubs using a free program like Calibre.

So, did the Xteink X3 fix me? Am I now a newly reformed woman who has a healthy relationship with social media and has read a bunch of classic novels that I never read as an English major, since I mostly took classes with ridiculous titles like “Aestheticus Extremus: The Politics of Precarious Invention in North American Poetry and Poetics”? It’s not that simple. But if you meet the X3 halfway and make a concerted effort to use it, then maybe you’ll spare yourself from a bit more brainrot.

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TechCrunch Mobility: How do you issue a ticket to a robotaxi?

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. To get this in your inbox, sign up here for free — just click TechCrunch Mobility!

We’re going to do a bit of a deep dive today, which may make this newsletter look a little different than normal. There is a reason! 

This newsletter is not region-specific, but sometimes there are policies at the state level that have widespread implications for tech companies and startups alike. Which brings me to California and the new autonomous vehicle testing and deployment rules issued this week by the state’s Department of Motor Vehicles. 

There are two new sets of rules — collectively 100 pages long — that cover requirements for the testing and deployment of AVs. I spent the past few days speaking to engineers and policy folks working at AV companies and discovered that they have strong opinions and few want to speak publicly about it. But thanks to the public commentary period on these regulations, we have some insight into what the industry supported and what it did not. 

The regulations include new, more robust requirements for data collection and sharing, training, and operations. Here are a few items that stuck out and what insiders told me.

How do you ticket a robotaxi? Under these new rules, law enforcement can cite AV companies for traffic violations committed by their vehicles. The rule, called “Notice of Autonomous Vehicle Noncompliance,” requires the manufacturer (meaning the robotaxi company) to report the violation to the DMV within 72 hours of receiving it from law enforcement. 

I’ve heard a number of interpretations of this rule and how it will be implemented, but it appears there is not a monetary fine attached to these violations. Instead, these violations are another piece of data that the DMV can use to identify problems and take action if needed.

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Insiders told me that the data is actionable and more important than a monetary fine. My question: Why not both? 

The good news for industry: The DMV will now allow heavy-duty vehicles equipped with autonomous vehicle tech to test and eventually deploy on public roads. Self-driving truck companies are happy with this outcome. Daniel Goff, VP of external affairs at Kodiak, told me the company is already working on the required documentation to apply for a permit. 

The burden for the industry: The word that came up in every conversation I had with someone in the AV industry was “burdensome.” And it was always used in reaction to the new data collection and sharing regulations. 

Goodbye, disengagement reports; hello, malfunctions: Others were happy to see annual disengagement reporting disappear. Disengagement reports, which detailed instances when human drivers had to take over control due to technology failures or safety concerns, have been controversial because companies use varying standards. This has made it impossible to compare the results or rate the proficiency of autonomous vehicle technology. 

That entire section has been removed and replaced with a requirement to report “dynamic driving task performance relevant system failure.” This may seem like semantics — trading one jargony phrase for another. Insiders tell me that while it is not a perfect metric, it is clearer than its predecessor. That doesn’t mean it is beloved either. 

There is a lot more in these documents, including a requirement to provide annual updates to first responder interaction plans, access to manual vehicle override systems, two-way communication links with 30-second response times, and updated training requirements to ensure safe and timely interactions with first responders.

My question for you, reader, is whether these rules go too far or if they are appropriate and provide the kind of reporting and data collection needed to keep these companies accountable? Sign up for the Mobility newsletter to vote in our polls!

A little bird

blinky cat bird green
Image Credits:Bryce Durbin

We had a lot of little birds talk to us about the new California AV rules, so nothing new to add here. But remember, you can always send us tips. Here’s how.

Got a tip for us? Email Kirsten Korosec at kirsten.korosec@techcrunch.com or my Signal at kkorosec.07, or email Sean O’Kane at sean.okane@techcrunch.com.

Deals!

money the station
Image Credits:Bryce Durbin

BMW i Ventures launched a new $300 million fund with a timely thesis: AI will reshape how the automotive industry operates. The fund will invest in early-stage through Series B startups in North America and Europe that are working on agentic AI and physical AI as well as industrial software, advanced materials, and manufacturing and supply-chain technologies. This third fund brings the firm’s total capital under management to $1.1 billion. 

Other deals that got my attention …

Sereact, a German robotics startup, raised $110 million in a Series B funding round led by VC Headline. Other investors include Bullhound Capital, Felix Capital, Daphni, Air Street Capital, Creandum, and Point Nine.

Spirit Airlines is preparing to shut down after failing to secure a $500 million lifeline from the government, the WSJ reports. The company is expected to cease operations around 3 a.m. ET Saturday.

Notable reads and other tidbits

Image Credits:Bryce Durbin

China suspended issuing new licenses for autonomous vehicles after dozens of Baidu’s Apollo Go robotaxis suddenly stopped last month, Bloomberg reported.

Google‘s Gemini AI assistant is hitting the road in millions of vehicles.

Faraday Future paid around $7.5 million to a company controlled by its founder, Jia Yueting, in 2025, senior reporter Sean O’Kane discovered in a recent SEC filing. 

Rivian reported earnings this week and one item that stood out to us — and to many others — was the downsizing of its DOE loan from $6.6 billion to $4.5 billion. That loan restructuring comes with changes to its Georgia factory. Instead of two 200,000-vehicle capacity structures on the Georgia site, Rivian will now build a 300,000-vehicle capacity factory and leave the adjacent “pad” untouched and ready for future development. Analysts didn’t necessarily view this as negative but did position this as rightsizing. Barclays, for instance, views the modification as Rivian adjusting to the current EV environment, according to a research note published Friday. Barclays also stated it didn’t believe Rivian currently plans to build the second plant at Georgia, “at least not until early/mid next decade.”

Tesla launched a Semi-Charging for Business program, which includes a new product called the Basecharger that is designed for depot and overnight use.

Uber has tapped Hertz to clean, charge, and fix its Lucid Motors robotaxis. This announcement left us with a cheeky question: How many companies does it take to launch a robotaxi service?

Uber customers in the United States can now book hotels directly through the app, one of several new features announced this week that pushes far beyond the company’s original ride-hailing purpose and even deeper into its users’ lives. At launch, Uber customers will have access to more than 700,000 hotels worldwide through a partnership with Expedia Group, the travel company that Uber CEO Dara Khosrowshahi led for 12 years.

Vay, a remote driving tech startup, says it has grown its fleet to 175 vehicles on the road and has surpassed 60,000 rides.

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In Harvard study, AI offered more accurate emergency room diagnoses than two human doctors

A new study examines how large language models perform in a variety of medical contexts, including real emergency room cases — where at least one model seemed to be more accurate than human doctors.

The study was published this week in Science and comes from a research team led by physicians and computer scientists at Harvard Medical School and Beth Israel Deaconess Medical Center. The researchers said they conducted a variety of experiments to measure how OpenAI’s models compared to human physicians.

In one experiment, researchers focused on 76 patients who came into the Beth Israel emergency room, comparing the diagnoses offered by two internal medicine attending physicians to those generated by OpenAI’s o1 and 4o models. These diagnoses were assessed by two other attending physicians, who did not know which ones came from humans and which came from AI.

“At each diagnostic touchpoint, o1 either performed nominally better than or on par with the two attending physicians and 4o,” the study said, adding that the differences “were especially pronounced at the first diagnostic touchpoint (initial ER triage), where there is the least information available about the patient and the most urgency to make the correct decision.”

In Harvard Medical School’s press release about the study, the researchers emphasized that they did not “pre-process the data at all” — the AI models were presented with the same information that was available in the electronic medical records at the time of each diagnosis. 

With that information, the o1 model managed to offer “the exact or very close diagnosis” in 67% of triage cases, compared to one physician who had the exact or close diagnosis 55% of the time, and to the other who hit the mark 50% of the time.

“We tested the AI model against virtually every benchmark, and it eclipsed both prior models and our physician baselines,” said Arjun Manrai, who heads an AI lab at Harvard Medical School and is one of the study’s lead authors, in the press release.

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To be clear, the study didn’t claim that AI is ready to make real life-or-death decisions in the emergency room. Instead, it said the findings show an “urgent need for prospective trials to evaluate these technologies in real-world patient care settings.”

The researchers also noted that they only studied how models performed when provided with text-based information, and that “existing studies suggest that current foundation models are more limited in reasoning over nontext inputs.”

Adam Rodman, a Beth Israel doctor who’s also one of the study’s lead authors, warned the Guardian that there’s “no formal framework right now for accountability” around AI diagnoses, and that patients still “want humans to guide them through life or death decisions [and] to guide them through challenging treatment decisions.”

In a post about the study, Kristen Panthagani, an emergency physician, said this is an “an interesting AI study that has led to some very overhyped headlines,” especially since it was comparing AI diagnoses to those from internal medicine physicians, not ER physicians.

“If we’re going to compare AI tools to physicians’ clinical ability, we should start by comparing to physicians who actually practice that specialty,” Panthagani said. “I would not be surprised if a LLM could beat a dermatologist at an neurosurgery board exam, [but] that’s not a particularly helpful thing to know.”

She also argued, “As an ER doctor seeing a patient for a first time, my primary goal is not to guess your ultimate diagnosis. My primary goal is to determine if you have a condition that could kill you.”

This post and headline have been updated to reflect the fact that the diagnoses in the study came from internal medicine attending physicians, and to include commentary from Kristen Panthagani.

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