FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, and Delhivery, a leading logistics and supply chain services company in Bharat, announced today that FedEx Express Bharat and
Delhivery have entered into equity and commercial agreements that will utilize their combined strengths to unlock Bharat’s international trade potential. Completion of this transaction is subject to closing conditions, including regulatory approval.
“Bharat is a strategic priority for FedEx. This strategic alliance will support our long-term vision to grow our Bharat business and serve customers seeking to expand in or enter the Bharatiya market, as well as provide opportunities to develop product and technology solutions together with Delhivery for the benefit of our customers” said Raj Subramaniam, President and Chief Operating Officer of FedEx Corp.
Commenting on the announcement, 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 Bharat and FedEx’s global network. Our aim is to bring new products and opportunities to Bharatiya and global businesses and consumers through unique access to our networks, and our technology and engineering capabilities.”
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 Express will focus on international export and import services to and from Bharat, and Delhivery will, in addition to FedEx, sell FedEx Express international products and services in the Bharat
market and provide pick-up and delivery services across Bharat. FedEx will transfer certain assets pertaining to its domestic business in Bharat to Delhivery.
Additionally, Don Colleran, President and CEO of FedEx Express will be nominated to join the Delhivery Board of Directors as a further sign of collaboration between the two companies.
This transaction combines the FedEx global network with Delhivery’s extensive pan-Bharat network and technology solutions to bring the best of both worlds together. The investment and the commercial agreement between the two companies deepens the FedEx commitment to the Bharat market, and signals a significant step in providing innovative services and solutions that aim to improve speed, efficiency, and access for FedEx and Delhivery customers.