FedEx invests $100 million in Indian startup Delhivery; calls India 'strategic priority'

IPO-bound Delhivery is all set to receive a $100 million investment from American giant, FedEx Express. The Indian startup, the American company has agreed to make a joint investment in Delhivery. Delhivery had previously raised about $277 million funding from a group of investors.

The partnership between FedEx Express and Delhivery

The partnership between FedEx Express, which is a subsidiary of FedEx Corporation, and Indian startup company Delhivery will follow a long-term commercial agreement between the two companies. According to the partnership, on one hand, FedEx Express will be focusing on exporting and importing services to and from India. On the other hand, Delhivery will sell the international products and services of FedEx in the Indian market and also provide pickup and delivery services throughout the country. 

The companies have issued a joint statement, and also said that FedEx will be transferring certain assets to its domestic business in India to Delhivery. 

According to the partnership, Don Colleran, president, and CEO at FedEx Express will be joining the Delhivery board in India. 

Speaking on the association, President and Chief Operating Officer at FedEx corp, Raj Subramaniam 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."

On the other hand, co-founder and CEO of Delhivery, Sahil Barua said, "We are excited to partner with FedEx and look forward to the synergies created between Delhivery's capabilities in India and FedEx 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."

FedEx Express and Delhivery 

A subsidiary of the logistics giants FedEx Corporation, FedEx Express is a delivery service company providing transportation, e-commerce, and business services to more than 200 countries and several territories. On the other hand, Delhivery is one of the leading supply chain companies in India which started in 2011. In a very short time, the company has gained a strong market position with great revenue generation.