U.S. delivery firm FedEx Corp said on Friday will make a $100-million equity investment in Indian e-commerce logistics startup Delhivery as part of a long-term commercial agreement.
SoftBank-backed Delhivery will sell FedEx Express’ international products and services in India, as part of the deal, and also provide pick-up and delivery services across the country.
FedEx will also transfer some of its assets from its India business to Delhivery, enabling broader access to the the Gurgaon-based startup’s pan-India network.
Don Colleran, chief executive officer of FedEx Express, shall also get a board seat at Delhivery.
Several Indian startups have spelt out plans to go public to cash in on liquidity by foreign funds. According to media reports, the startup which is eyeing a market debut as early as the fourth quarter is weighing a valuation of $4 billion.