Mumbai: FedEx Express, a subsidiary of global logistics solutions provider FedEx Corp, has invested $100 million in homegrown logistics and supply chain startup Delhivery. This is the first such strategic capital to be ploughed into the Indian company which is expected to hit the public markets by early 2022.
The strategic investment from FedEx comes on the back of the Indian company having raised around $277 million (over Rs 2,000 crore) in a new funding round co-led by US-based Fidelity and Singapore’s sovereign wealth fund GIC, valuing it at about $3 billion.
Delhivery is targeting a public market listing next year to raise around $650-$800 million, for which it is in talks with investment bankers such as Citibank, Kotak Mahindra Capital, Bank of America Merrill Lynch and Axis Capital.
“FedEx will transfer certain assets pertaining to its domestic business in India to Delhivery. Additionally, Don Colleran, president and CEO of FedEx Express, will be nominated to join the Delhivery Board of Directors,” according to a joint statement on Friday.
With this, the two companies will enter into a long-term commercial agreement under which FedEx Express will focus on international export and import services to and from India. Delhivery will, in addition to FedEx, sell FedEx Express international products and services in the India market and provide pick-up and delivery services across India.
“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 COO of FedEx Corp.
FedEx Express provides delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date with a money-back guarantee.
“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, cofounder and CEO, Delhivery.
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