IPO-bound Delhivery on Friday said that it has secured a fresh $100-million equity investment from FedEx Express, a subsidiary of FedEx Corp. The development comes less than two months after the logistics start-up raised about $277 million in funding from a clutch of investors that valued the firm at an estimated $3 billion.
The partnership entails a long-term commercial agreement between the two companies. FedEx Express will focus on international export and import services to and from India while 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 the country.
FedEx will also transfer certain assets pertaining to its domestic business in India to Delhivery, the two firms said in a joint statement.
As part of the association, Don Colleran, president & CEO at FedEx Express, will be nominated to join Delhivery’s board of directors.
“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 at FedEx Corp.
Delhivery, which turned unicorn in 2019 on the back of a $400-million funding round led by SoftBank, is reportedly looking to go public early next year. The company claims to have fulfilled over 1 billion shipments since its launch in 2011 to more than 300 million households across India. Last year, the firm had said that it plans to invest over Rs 300 crore on expansion in the coming 18-24 months, increasing its fleet size and setting up more mega trucking terminals.
“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. 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 & CEO at Delhivery.
