AAA FedEx Express injects $100m in Delhivery

FedEx Express injects $100m in Delhivery

India-based shipping and logistics service Delhivery received a $100m investment today from transportation and delivery services provider FedEx Express, a subsidiary of logistics services group FedEx.

Delhivery provides e-commerce businesses across India with logistics and shipping services, including express parcel transportation, freight shipping, reverse logistics, warehousing and end-to-end supply chain services. It said it has fulfilled more than 1 billion shipments and has 15,000 customers.

The companies are entering into a long-term commercial agreement and FedEx will transfer part of its domestic business in India to Delhivery.

While Delhivery will focus on selling international products and services in the Indian market and providing pick-up and delivery services across India, FedEx Express will prioritise international export and import services to and from India.

Don Colleran, president and CEO of FedEx Express, will join Delhivery’s board of directors in conjunction with the investment.

Delhivery raised $277m in a series H round led by financial services and investment group Fidelity in May this year that included Gamnat, Chimera Investments and Pacific Horizon Trust. It is planning to launch an initial public offering in 2022 that is expected to raise about $500m, reportedly at a valuation of about $3bn.

Media conglomerate Bennett Coleman & Co’s Times Internet subsidiary contributed to a series A round of undisclosed size for the company in 2012 and a $5m series B round in 2013.

Tiger Global Management, Multiple Alternate Asset Management and Nexus Venture Partners backed the company in a $35m series C round in 2014 and an $85m series D round a year later that also featured Times Internet.

Private equity firm Carlyle Group led the $100m first tranche of a 2017 round that closed at $130m with backing from conglomerate Fosun and Tiger Global.

Telecommunications and internet group SoftBank’s Vision Fund provided $350m to lead a $413m series F round for the company in March 2019 that was also backed by Fosun and Carlyle Group’s CA Swift Investments unit. It received $115m in funding from Canada Pension Plan Investment Board six months later.

Steadview Capital made a $25m secondary investment in December 2020, buying shares in Delhivery at a $2bn post-money valuation.