FedEx Express to invest $100 million in Delhivery.

FedEx Express, a subsidiary of FedEx Corp., the world’s largest express transportation company, will invest $100 million in logistics and supply chain services company Delhivery.

The New York Stock Exchange-listed company did not disclose the quantum of stake it will pick for investing $100 million in Delhivery.

“FedEx is investing in Delhivery, but we cannot share the equity stake that FedEx will receive, as a result of this investment,” FedEx Express said.

Following the deal, FedEx Express’ President and CEO, Don Colleran, will join the Delhivery board.

FedEx Express and Delhivery will enter into a long-term agreement, whereby the former will focus on international export and import services to and from India, and Delhivery will, in addition to FedEx, sell FedEx Express’ international products and services in India and provide pick-up and delivery services across the country.

FedEx will transfer certain assets pertaining to its business in India to Delhivery, FedEx Express said in a statement.

“This strategic alliance will support our long-term vision to grow our India business and serve customers seeking to expand in or enter the Indian 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.

Delhivery is said to have initiated steps for a stock market listing by early next year.

HBL