US-based FedEx Express today announced that it has entered into equity and commercial agreements with homegrown logistics supply chain startup Delhivery. As part of the agreement, Both the companies will utilize their combined strengths to unlock India’s international trade potential.
Completion of this transaction is subject to closing conditions, including regulatory approval, the company said. FedEx Express also announced that it will be investing $100 million (about Rs 746 crore) in Delhivery and will enter into a long-term commercial agreement.
Further, The US-based logistics giant will also focus on international export and import services to and from India, and Delhivery will, in addition to FedEx, sell FedEx Express international products and services in the Indian market and provide pick-up and delivery services across India. FedEx will transfer certain assets pertaining to its domestic business in India to Delhivery, the company adds.
Speaking on the development, Raj Subramaniam, President and Chief Operating Officer of FedEx Corp, said:
“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.”
Additionally, The deal will also allow Don Colleran, President & CEO of FedEx Express to join the Delhivery Board of Directors as a further sign of collaboration between the two companies.
“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, said Sahil Barua, Co-founder & CEO of Delhivery.
Delhivery wаs fоunded in Mаy 2011 by Mоhit Tаndоn, Sаhil Bаruа, Bhаvesh Mаnglаni, Kарil Bhаrаti, аnd Surаj Sаhаrаn. Initiаlly, аfter its inсeрtiоn, it wаs соnсeived аs а hyрerlосаl exрress delivery serviсe рrоvider fоr оffline stоres, delivering flоwers аnd fооd lосаlly in Gurugrаm. During thаt time, Indiа’s оnline retаiling аnd e-соmmerсe seсtоrs were rарidly grоwing, with internаtiоnаl investоrs shоwing а keen interest in the соuntry.
Last month, The ten-year-old logistics startup had announced that it will be launching its IPO by March 2022.