Homegrown logistics company Delhivery has got funds of $100 million in equity from FedEx Express, a subsidiary of one of the world’s largest transport companies FedEx Crop.
Both Delhivery and FedEx Express India also have set foot into equity and commercial agreements that will utilize their combined muscle to explore and unlock India’s international trade potential.
As per the companies’ joint statement, Delhivery will sell FedEx Express international products and services in the Indian market and provide pick-up and delivery services across India. Completion of this deal is subject to closing conditions, including regulatory approval. In addition, Don Colleran, president, and CEO of FedEx Express, will be nominated to Delhivery’s Board of Directors.
The Gurugram based company has recently raised $277 million (overs. 2,000 Cr.) in its series H round, led by Boston-headquartered investment firm Fidelity and Singapore-based Sovereign Wealth fund GIC value it at about $3 billion.
Delhivery is planning to go for public listing next year and raise around $650-$800 million. For this, it is in talks with investment bankers such as Kotak Mahindra Capital, Bank of America Merrill Lynch, Citibank, Axis Capital, etc.
This strategic alliance will support our long-term vision to grow our Indian business and serve customers seeking to expand in or enter the Indian market, as well as to provide an opportunity to develop product and technology solutions together with Delhivery for the benefit of our customers. Said Raj Subramaniam, President, and CEO of FedEx Express.
Delhivery, founded by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati in 2011. It is worth noting that out of these 5 co-founders, Bhavesh Manglani and Mohit Tandon had moved on from the company in March, and they have now been reclassified as retiring and non-active promoters in the company.
Sahil Barua led company, offers logistics services such as express parcel transportation, reverse logistics, cross-border logistics, end-to-end supply chain services, B2B & B2C warehousing, and technology services and works with over 15,000 customers, including large & small e-commerce participants, SMEs, and other enterprises and brands. The company claimed that it had made deliveries across over 18,700 pin codes in India since its inception.
In FY20 the finances of the company have improved as compared to FY19, as per the findings Delhivery has been able to narrow its losses from Rs. 1,772.7 Cr in FY19 to Rs. 269 Cr in FY20. During this period, the consolidated revenue of the company had increased by 76.4% to Rs 2,988.6 Cr as compared to Rs 1,694 Cr in the previous fiscal year.