With plans to procure its presence in India, FedEx’s subsidiary FedEx Express invested $100million in Indian delivery service Delhivery. Delhivery began as a food delivery chain has now services all over India across various categories.
Delhivery had earlier secured an investment of $277million ahead of its initial public offering. The two companies FedEx Express and Delhivery will now enter a commercial agreement and will focus on international export and import services for now. Delhivery will also sell and deliver international products and services of FedEx Express in India and will get a share of the profit.
Delhivery plans to digitize the logistics system in the country and is one among the few startups to attempt to do so. It connects consigners, agents, and truckers. Its efficient system is said to reduce many known problems of the logistics system in the country which inhibit the growth of the economy. Delhivery claims that it has delivered over 1 billion orders and has worked with almost all of India’s leading e-commerce companies. The investment by FedEx will only increase its value in the current market.
