FedEx Express, a subsidiary of FedEx Corp., is investing US$100 million in logistics services provider Delhivery, one of India's unicorn startups which is expected to go public soon.
As part of the deal — which is subject to closing conditions, including regulatory approvals — FedEx Express will enter into a long-term commercial agreement with the SoftBank-backed company.
While FedEx Express will concentrate on international export and import services to and from India, Delhivery will sell FedEx Express international products and services in India as well as provide pick-up and delivery services throughout the country.
FedEx will also transfer to Delhivery certain assets related to its domestic business in India.
Strategic priority for FedEx
"India is a strategic priority for FedEx. 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," said Raj Subramaniam, president, and chief operating officer of FedEx Corp.
Sahil Barua, co-founder, and chief executive officer, Delhivery noted that the team is looking forward to providing unique access to its networks, technology, and engineering capabilities.
"We are excited to partner with FedEx and look forward to the synergies created between Delhivery's capabilities in India and FedEx’s global network," Barua added.
"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."
Don Colleran, president, and chief executive of FedEx Express, is reported to be joining the Delhivery board.
Founded in 2011, Delhivery is a "hyperlocal logistics company," that has a significant market share in the business-to-consumer e-commerce logistics space in India, although 80% of its revenues come from its B2B service.
In December 2020, the New Delhi-based logistics start-up said it was looking to go public in 12-15 months.
