FedEx Express, on Friday, said that it has entered into equity and commercial agreements with homegrown Delhivery and that under this agreement, they will utilize their combined strengths to unlock India’s international trade potential.
As part of the said collaboration, FedEx will make a US$100 million equity investment in Delhivery, and the companies will enter into a long-term commercial agreement. Completion of this transaction is subject to closing conditions, including regulatory approval.
While FedEx Express will focus on international export and import services to and from India, 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.
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.”~ Raj Subramaniam, President and Chief Operating Officer of FedEx Corp.
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.”~ Sahil Barua, Co-founder, and Chief Executive Officer, Delhivery
In addition to this, Don Colleran, President and CEO of FedEx Express will be nominated to join the Delhivery Board of Directors as a further sign of collaboration between the two companies.
This transaction combines the FedEx global network with Delhivery’s extensive pan-India network and technology solutions to bring the best of both worlds together. The investment and the commercial agreement between the two companies deepen FedEx’s commitment to the Indian market and signal a significant step in providing innovative services and solutions. that aim to improve speed, efficiency, and access for FedEx and Delhivery customers.