Indian logistics startup Delhivery bags $100m from FedEx Express

Delhivery, an India-based logistics and supply chain startup, has raised US$100 million from FedEx Express, a subsidiary of US-headquartered delivery services major FedEx Corp.

Besides the investment, Delhivery and FedEx Express also entered a commercial agreement to forge a strategic partnership.

Photo credit: Delhivery

FedEx Express will look after international export and import services to and from India on behalf of Delhivery. Meanwhile, Delhivery will sell FedEx Express’ international products and services in the Indian market and handle pick-up and delivery across the country. FedEx will also hand over certain assets it holds under its business in India to Delhivery, though the company did not specify which assets these will be.

Along with the investment, FedEx Express president and CEO Don Colleran will be nominated to join Delhivery’s board of directors, the two companies said in a joint statement.

The partnership comes ahead of Delhivery’s plans to go public by March next year. The company has said it expects to raise between US$400 million and US$500 million in its public offering. According to the logistics company, the capital raised from the listing would be used to develop its cross-border and tech-based solutions for smaller businesses.

In May this year, Delhivery raised US$277 million in a series H round led by Fidelity Investments. Some of the firm’s early investors include SoftBank, Tiger Global, and the Carlyle Group, among others.