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FedEx unit invests $100 million in Indian logistics firm Delhivery

FedEx Express’ Indian operation also signs long-term operating alliance with logistics firm

FedEx Express expands in India through alliance with Delhivery (Photo: Jim Allen/FreightWaves)

FedEx Express, the air and international unit of FedEx Corp. (NYSE:FDX), said Friday that it has made a $100 million equity investment in Indian transport and logistics firm Delhivery, and that the FedEx unit’s Indian operation will operate an integrated air-ground service with Delhivery in the country’s domestic and international markets.

Under the agreement, described by FedEx in a statement as “long-term” in duration, FedEx Express will offer international services to and from India. Delhivery and FedEx Express will provide pickup and delivery services across India, and the two will sell FedEx Express’ international portfolio in the Indian market, FedEx Express said. 

FedEx will transfer some of its domestic Indian business to Dehlivery, FedEx said, without elaborating. Don Colleran, president and CEO of FedEx Express, will be nominated to join the Delhivery board of directors, FedEx Express said.

Memphis, Tennessee-based FedEx began serving India in 2002. Its Indian operation operates 38 weekly round-trip flights over three air gateways.

Delhivery, based in Delhi, was founded in 2011.

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.