The Logistics Discount, ‘India DeepSpark’ Initiative, and Crypto Industry’s Plea

Shadowfax’s IPO didn’t fail. It disappointed. And that disappointment was structural, not emotional. Public markets were not reacting to Shadowfax’s numbers. They were repricing the entire idea of logistics as a venture-scalable business.

A 9% listing discount may look minor on a chart, but structurally it marks the end of an era where logistics companies could borrow tech-style multiples simply by riding e-commerce growth.

For a decade, India’s logistics startups sold a simple story. As internet commerce grew, the pipes of the internet would become more valuable. Shadowfax, Delhivery, and Ecom Express became the invisible infrastructure powering Meesho, Flipkart, Blinkit, Zepto, and Swiggy. Volume exploded. Pin codes expanded. Daily orders crossed hundreds of millions. Yet what scaled was capacity, not control.

Quick commerce made this distortion worse. Platforms demanded ten-minute SLAs, externalizing speed risk to third-party partners while holding pricing power themselves. The result is a delivery economy with razor-thin margins trapped inside a cost corridor. Whether it is Shadowfax or a rider fleet run by Blinkit itself, the math barely changes. Consumers will not pay more than ₹15-20 for speed. Riders cannot earn much beyond subsistence after fuel, wear-and-tear, and platform cuts. Density improves efficiency but does not create pricing power. At scale, logistics behaves less like software and more like electricity.

This is the infrastructure paradox. These companies are essential, but essential does not mean profitable.

Public markets understand this. A logistics business that depends on three or four hyper-funded platforms for most of its revenue is not a growth story; it is a concentration risk. Meesho’s pivot to in-house logistics destroyed Ecom Express. Blinkit and Zepto are now doing the same arithmetic: why pay a third party when vertical integration saves 10% on opex? Every captive fleet shrinks the addressable market for pure-play delivery.

Regulation is tightening the vise. Gig worker welfare laws add fixed costs per order. EV mandates force fleet transitions. ONDC is commoditizing access by letting any logistics provider bid for any merchant’s delivery. What was once proprietary network advantage is becoming open plumbing. Density is no longer a moat if it can be purchased by capital.

Valuation collapse follows structure. Private markets priced Shadowfax like a platform. Public markets see it as a utility. Global peers confirm the pattern: mature delivery companies trade at modest multiples because logistics does not compound like software. Without “plus” services - finance for drivers, SaaS for warehouses, or cross-border operations - pure last-mile delivery cannot defend margins.

This is why the discount matters. It is not punishment; it is classification. The market is saying: logistics belongs with factories, not apps.

The next phase will not reward who moves the most parcels. It will reward who controls the most economics. That means diversification away from single clients, building services beyond delivery, and proving that margins can expand without subsidies. Otherwise, consolidation is inevitable. Two or three integrated networks will survive. The rest will be absorbed or suffocated.

The discount is not a verdict on Shadowfax. It is a verdict on what kind of business logistics really is.

Let’s go through what else is happening in Indian startup world - Grab your simmering cup of StartupChai.in and unwind with our hand-brewed memes.

“Hum Saath Saath Hai”: AUM Ventures partners with Sanyark Space as its first investment from its ‘India DeepSpark’ Deeptech initiative

Early-stage VC firm AUM Ventures has partnered with spacetech startup Sanyark Space, marking the first investment from its India DeepSpark deeptech initiative and a clear vote of confidence in homegrown space infrastructure.

Founded by former ISRO scientists, Sanyark is building India’s first multi-mission NAV-COM satellite constellation aimed at indigenous positioning, navigation, timing, and secure IoT communication.

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“Prabhuji Daya Karo”: Crypto industry asks for tax relief and regulatory clarity in Union Budget 2026

As Union Budget 2026 nears, India’s crypto industry is asking for tax relief and regulatory clarity, arguing that the debate has shifted from legitimacy to retention of capital, liquidity, and builders within the country.

While 2025 saw crypto go fully mainstream globally with stablecoins handling $46 Tn in transactions and over $175 Bn flowing into Bitcoin and Ethereum ETFs, India’s VDA ecosystem remains boxed in by what founders call a “tax-and-deter” regime.

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1. D-Propulse Aerospace has raised ₹25 Cr from IAN Alpha Fund to advance its defence and aerospace propulsion systems, marking a fresh vote of confidence in indigenous hard engineering. The capital will be used to hire engineers, scale simulation and computing capabilities.

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2. AI semiconductor startup Agrani Labs has raised $8 Mn from Peak XV Partners as it exits stealth and formally launches operations. Founded by ex-AMD and Intel veterans with Vinod Dham as founding advisor, the startup is building an indigenous AI chip backed by a full-stack software platform.

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3. Entellus Industries has raised ₹50 Cr in a round led by deeptech-focused ZeroW to scale its rare earth metals and alloys manufacturing capabilities. The startup plans to expand into sintered alloys and commercialise products such as NdPr metal, bonded powders, and strip-cast alloys.

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4. Cleantech startup ScrapUncle has raised ₹22 Cr in a round led by Orios Venture Partners and Acumen Fund to expand its footprint across Delhi NCR. The fresh capital will go into fulfilment infrastructure and early groundwork for an in-house e-waste recycling facility.

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5. Spacetech startup The Guild has raised $20.5 Mn in a Series A round led by TDK Ventures and BIG Capital, with backing from Accel, Prosus, and others. The fundraise has pushed the Bengaluru-based company’s valuation up 5.5x to $80.5 Mn, taking its total capital raised to $25.5 Mn.

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6. AquaAirX has raised ₹12.5 Cr in a seed round led by Zerodha’s Rainmatter, with participation from Prime Venture Partners, Wyser, and India Accelerator. The deeptech startup is building amphibious and underwater autonomous platforms.

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7. SBC LLP has closed its pre-Series A round at a ₹100 Cr valuation, with the funding co-led by Raju Menon and Suresh Katamreddy. The firm plans to use the capital to expand across the India-UAE-US corridor, build AI-enabled platforms, and deepen its specialised advisory capabilities.

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8. AI-native film studio TakeTwo has secured pre-seed funding at a ₹100 Cr valuation, with participation from US-based Afore Capital and Canada’s Inovia VC. The startup is focused on building high-end visual storytelling capabilities by integrating AI deeply into the filmmaking pipeline.

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