New Delhi, July 16 (SocialNews.XYZ) Homegrown logistics and supply chain services company Delhivery on Friday announced that global giant FedEx will make a $100 million equity investment in the company to unlock India's international trade potential.
FedEx Express, a subsidiary of FedEx Corp and Delhivery will enter into a long-term commercial agreement. FedEx Express will 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 India 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 companies said in a statement.
"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.
The completion of this transaction is subject to closing conditions, including regulatory approval.
"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, and Chief Executive Officer, Delhivery.
As part of the collaboration, Don Colleran, President and CEO of FedEx Express will be nominated to join the Delhivery Board of Directors.
Delhivery in May announced that it raised $275 million in a primary funding round led by Fidelity Management and Research Company.
With the fresh capital, Delhivery's valuation was expected to rise to over $3 billion.
The capital infusion comes in when the company has witnessed healthy revenue growth in FY21 despite the pandemic and is well poised on its path to profitability.
With its nationwide network covering over 18,700 pin codes, Delhivery provides a full suite of logistics services.
The company has successfully fulfilled over one billion shipments since inception and works with over 15,000 customers, including large & small e-commerce participants, SMEs, and other enterprises and brands.
Source: IANS
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