FedEx Express India and Delhivery have entered into equity and commercial agreements under which the two companies will jointly use their strengths to enhance India’s international business potential.
symbolic picture
FedEx Express, a subsidiary of top global delivery service company FedEx Corporation, will invest $100 million in e-commerce logistics platform Delhi. FedEx Express India and Delhivery have entered into equity and commercial agreements under which the two companies will jointly use their strengths to enhance India’s international business potential.
The company said in a statement on Friday that this transaction will be completed based on the closing conditions including regulatory approvals.
As part of this collaboration, FedEx Express will make an equity investment of $100 million in Delhi, and the two companies will enter into a long-term commercial agreement.
Raj Subramaniam, President and Chief Operating Officer, FedEx Corporation said, India is a strategic priority for FedEx. This strategic alliance will help in our long-term vision to grow our business in India and serve our customers looking to expand or enter the Indian market. At the same time, we will provide opportunities to develop product and technology solutions in collaboration with Delhivery for the benefit of our customers.
these are investments
Many big investors like Tiger Global Management, Carlyle Group, CPPIB, Fidelity and GIC have made big investments in Delhivery including Softbank. The company recently raised $277 million in fundraising, bringing its valuation to nearly $3 billion.
will acquire this company
Domestic logistics company Delhivery is preparing to launch an IPO between December 2021 and March 2022. But before that the company is preparing to acquire Bengaluru-based logistics firm Spoton Logistics.
IPO will be of $ 40-50 million
Delhivery’s IPO will be between $ 40-50 million. The company will use the money received from this IPO to expand its business. Along with this, investment will also be made in the technology vertical of the company. The company’s co-founder and CEO Sahil Barua had said in an interview that Delhivery will be listed in India itself. The company is working on the details of the issue, including its issue size, appointment of merchant bankers and lead managers.
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