FedEx Express, a subsidiary of top global delivery services giant FedEx Corporation, will invest $100 million in e-commerce logistics platform Delhivery. FedEx Express India and Delhivery have entered into equity and commercial agreements under which the two companies will jointly use their strengths to enhance India’s international business potential. In a statement on Friday, the company said that the transaction will be completed subject to the closing conditions including regulatory approvals.
As part of this collaboration, FedEx Express will make an equity investment of $100 million in Delhivery and the two companies will enter into a long-term commercial agreement. Raj Subramaniam, President and Chief Operating Officer, FedEx Corporation, said, “India is a strategic priority for FedEx. This strategic alliance will help in our long-term vision to grow our business in India and serve our clients looking to expand or enter the Indian market. At the same time we will provide opportunities to develop product and technology solutions in collaboration with Delhivery for the benefit of our customers.
Under this, SoftBank-backed Delhivery will sell FedEx Express’s international products and services in India and will also provide pick-up and delivery services across the country. Additionally, FedEx will also transfer some assets of its Indian business to Delhivery, which will help the company gain access to the country’s network.