FedEx To Invest $100 Million In Delhivery To Boost Business In India
Don Colleran, President and CEO of FedEx Express will join Delhivery Board of Directors
FedEx Express, a subsidiary of FedEx Corporation, will invest $100 million into Delhivery, India's leading logistics and supply chain services company in an attempt to "utilize their combined strengths to unlock India's international trade potential." "As part of the collaboration, FedEx will make a US$100 million equity investment in Delhivery, and the companies will enter into a long-term commercial agreement," Fedex said in a note on its website. The transaction is subject to closing conditions, including regulatory approval.
"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 Corporation said in a note on the Fedex website.
As part of the collaboration, 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 Indian market and provide pick-up and delivery services across India.
Sahil Barua, Co-founder, and Chief Executive Officer, Delhivery, 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."
In a related development, Don Colleran, President and CEO of FedEx Express will be nominated to join the Delhivery Board of Directors as part of the collaboration between the two companies.