FedEx to Invest $100 Million in Logistics Company in India
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MUMBAI — FedEx Express Corp. on July 16 said it has entered into equity and commercial agreements with Delhivery, a logistics and supply chain services company in India, which will utilize their combined strengths to unlock India’s international trade potential.
As part of the collaboration, FedEx will make a $100 million equity investment in Delhivery, and the companies 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 pickup and delivery services across India. FedEx will transfer certain assets pertaining to its domestic business in India to Delhivery.
Subramaniam
“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” FedEx Corp. President Raj Subramaniam said.
“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,” Delhivery co-founder and CEO Sahil Barua said.
FedEx Express CEO Don Colleran will be nominated to join Delhivery’s board of directors in another sign of collaboration between the companies.
FedEx Corp. ranks No. 2 on the Transport Topics Top 100 list of for-hire carriers in North America.
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