FedEx is looking to expands its footprint in India as it agreed to invest US$100 million in logistics startup Delhivery.
The two companies have entered into a long-term commercial agreement where FedEx will focus on export and import services to and from India, whilst Delhivery will sell the former’s products and services and provide pick-up and delivery services across its pan-India network.
As part of the deal, the leading integrator will transfer certain assets pertaining to its domestic business in India to the logistics startup. Completion of the transaction is subject to closing conditions, including regulatory approval, the integrator noted.
Don Colleran, president and chief executive of FedEx Express, will take a seat on Delhivery’s board. According to local reports, the Softbank-backed logistics startup is eyeing to go public by the fourth quarter of this year, looking at a valuation of US$4 billion. It raised US$275 million in its series H round in June, led by Boston-headquartered investment firm Fidelity Management and Research Company
The company, which started operations in 2011, provides express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing, as well as supply chain and technology services.