FedEx Express India and Delhivery have entered into equity and commercial agreements that will utilise 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.
The investment and the commercial agreement between the two companies will deepen FedEx commitment to the Indian market. In addition, it signals a significant step in providing innovative services and solutions, which will improve speed, efficiency, and access for FedEx and Delhivery customers.
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 Indian market and provide pick-up and delivery services across India. In addition, FedEx will transfer certain assets pertaining to its domestic business in India to Delhivery.
As part of this initiative, Don Colleran, President and CEO of FedEx Express, will be nominated to join the Delhivery Board of Directors.
Raj Subramaniam, President and Chief Operating Officer of FedEx Corp, said India is a strategic priority for FedEx, and this strategic alliance will support the company’s long-term vision to grow its India business. Besides, it will serve customers seeking to expand in or enter the Indian market and provide opportunities to develop product and technology solutions together with Delhivery for the benefit of its customers, he added.
Sahil Barua, Co-founder and Chief Executive Officer, Delhivery, said the company aims to bring new products and opportunities to Indian and global businesses and consumers through unique access to its networks and technology and engineering capabilities.