India-based IPO-bound startup Delhivery has raised a US$100-million equity investment from FedEx Express, a subsidiary of FedEx Corp on July 16 2021. The expansion came less than two months after the logistics startup fundraised almost US$277 million from a group of investors that took the valuation of Delhivery at an estimated US$3 billion.
The unicorn turned startup Delhivery in 2019, on the back of a $400-million funding round led by SoftBank, was founded in 2011 by Bhavesh Manglani, Kapil Bharati, Mohit Tandon, Sahil Barua, Suraj Saharan.
It claims to have accomplished over 1 billion shipments since its launch to more than 300 million houses across India. The firm had said that it is preparing to invest over Rs 300 crore on expansion in the coming 18-24 months, said the company in 2020, expanding its fleet size and installing more mega trucking termini.
Purpose of the Investment
FedEx Express will be concentrating on the operations in the light of foreign export and import services to and from India, as it involves a long-term commercial agreement between the two corporations. At the same time, under the fellowship, Delhivery will, in addition to FedEx, sell FedEx Express’ global products and settings in the Indian market and provide pick-up and delivery services nationwide.
FedEx Express offers delivery services to more than 220 countries and provinces. It uses global air-and-ground channels to expedite delivery of time-sensitive consignments and shipments by a definite time and date with a money-back guarantee.
In addition to that, FedEx will take charge of transferring some assets of its domestic market in India to Delhivery, the two companies declared in a joint statement. Don Colleran, president & CEO at FedEx Express, has been nominated to join Delhivery’s board of directors as a part of the corporation.
The Gurugram-based startup is planning to formulate a public market list to raise about $650-$800 million in 2022 with investment bankers such as Citibank, Kotak Mahindra Capital, Bank of America Merrill Lynch and Axis Capital.
What the Company has to say
Co-founder & CEO at Delhivery, Sahil Barua, said, “We are thrilled to partner with FedEx and look forth to the synergies created among Delhivery’s capabilities in India and FedEx’s international network. Our purpose is to bring new products and possibilities to Indian, global businesses and the consumers through unparalleled access to our arteries, technology and engineering capabilities.”
What the Investors have to say
President and chief operating officer at FedEx, Raj Subramaniam, said, “India is a strategic preference for FedEx. This strategic collaboration will support our long-term foresight to expand our relevance in the Indian markets and serve customers trying to expand in or enter the same, as well as presenting opportunities to increase product and technology solutions mutually with Delhivery for the advantage of our customers.”
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