Home-grown logistics and supply chain management firm Delhivery has just raked in an impressive $100 million as part of a deal with FedEx Express, a subsidiary unit under global delivery giant FedEx Corp. The deal is an equity and commercial agreement between the company and the Indian startup, and has been struck up in a bid to tap into the international trade potential in India, as per a statement released by FedEx.
The Indian firm is planning to go for an initial public offering sometime in early 2022, and this $100 million investment happens to be the first strategic capital infusion of this kind into its business. During its IPO, which, for now, is slated for March next year, the company expects to raise between $400 million to $500 million. The capital so raised will be directed towards honing the cross-border and tech-based solutions, especially for smaller businesses.
Just two months back, the firm also raised sums worth $277 million in a Series H round which was led by Fidelity Investments. Early backers include Tiger Global, SoftBank, and Carlyle Group.
Co-founder and CEO at Delhivery, Sahil Barua expressed excitement over the partnership, saying, “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.”
Under the terms of the deal, Don Colleran, the President and CEO at FedEx Express, will be joining the Board of Directors at Delhivery. Moreover, the international firm will take responsibility for global exports and import services to and from India, on behalf of Delhivery. On the other hand, the international products and services under FedEx banner will be made available to the Indian public through the home-grown firm, which will also be managing pick-up and delivery across the country. Some of the assets that FedEx holds will also be transferred to the startup.
Delhivery came into being in 2011, and has become one of the leading supply chain firms in the world. Having successfully completed more than 1 billion orders to over 300 million households across the 2300 cities in the country, the firm boasts of 24 automated sort centers, 75+ hubs, 85+ fulfilment centers, and more, along with an extensive network of more than 40000 team members, spread over more than 7500 partner centers.