On July 16, homegrown logistics and supply chain services company Delhivery announced that FedEx, a subsidiary of FedEx Corp, is set to make a $100 million equity investment in the company to boost India’s international trade potential.
Global giant FedEx and Delhivery are all set to enter into a long-term commercial agreement. FedEx’s focus will lie on international export and import services to and from India. On the other hand, Delhivery will sell FedEx Express international products and services in the Indian market. It will also provide pick-up and delivery services across the country.
Various assets on FedEx’s domestic business in India will be transferred to Delhivery, a statement by the companies has confirmed.
“This strategic alliance will support our long-term vision to grow our India business and serve customers seeking to expand in or enter the Indian market, as well as provide opportunities to develop product and technology solutions together with Delhivery for the benefit of our customers” Raj Subramaniam, Indian American president and chief operating officer of FedEx Corp., was quoted as saying.
The transaction’s completion is subject to closing conditions, including regulatory approval.
“Our aim is to bring new products and opportunities to Indian and global businesses and consumers through unique access to our networks and our technology and engineering capabilities,” said Sahil Barua, co-founder and CEO of Delhivery.
In May 2021, Delhivery announced that led by Fidelity Management and Research Company; it raised $275 million in a primary funding round.
It was expected that Delhivery’s valuation would rise to more than $3 billion with the fresh capital. The capital infusion comes in when the company’s revenue is found to be healthy despite the Covid-19 pandemic causing widespread difficulties.
Delhivery, with its network covering over 18,700 pin codes across India, provides a full suite of logistics services. Since the company’s inception in 2011, it has successfully fulfilled more than one billion shipments. The company works with more than 15,000 customers, including large and small e-commerce participants, SMEs, and various other brands and enterprises. Delhivery has now become India’s leading supply chain services company.