FedEx Express India and Delhivery have entered into equity and commercial agreements.
FedEx Express, a subsidiary of leading global express transportation company FedEx Corp, will invest USD 100 million in e-commerce logistics platform Delhivery. FedEx Express India and Delhivery have entered into equity and commercial agreements that will use their combined strength to unlock India’s international business potential.
Completion of this transaction is subject to closing conditions including regulatory approvals, a company statement said on Friday. As part of the collaboration, FedEx will make an equity investment of $100 million in Delhivery, and the companies will enter into a long-term commercial agreement.
“India is a strategic priority for FedEx. This strategic alliance will provide opportunities to grow our India business and serve customers looking to expand or enter the Indian market, as well as develop product and technology solutions. will support our long-term vision for Delhi for the benefit of our customers,” said Raj Subramaniam, President and Chief Operating Officer, FedEx Corp.
FedEx Express will focus on international export and import services to and from India, and Delhivery, in addition to FedEx, will sell FedEx Express international products and services in the India market and provide pickup and delivery services across India. FedEx will move certain assets related to its domestic business in India to Delhi.
Additionally, FedEx Express President and CEO Don Colernan will be nominated to join the Delhi board of directors as a further sign of cooperation 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. We aim to help Indian and global businesses and consumers through unparalleled access to our network.” Bringing in new products and opportunities, and our technology and engineering capabilities,” said Sahil Barua, Co-Founder and Chief Executive Officer, Delhivery.
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