Ahead of Delhivery’s IPO, CCI approves FedEx’s minority stake buy in the company

Along with the agreement, FedEx has accepted funding $100 million in Delhivery, one of India’s unicorn startups ready to go public soon.

India’s competition watchdog Competition Commission of India (CCI) has authorised the purchase of a minority stake in logistics services provider Delhivery Ltd by FedEx Express, a unit of American transportation giant FedEx Corp.

Along with the agreement, FedEx has accepted funding $100 million in Delhivery, one of India’s unicorn startups ready to go public soon.

FedEx Express will start into a long-term commercial agreement with SoftBank-backed Delhivery. While FedEx Express will concentrate on global export and import services to and from India, Delhivery will, along with FedEx, sell FedEx Express global products and services in India and offer pick-up and delivery services beyond the country.

Moreover, FedEx will transport certain assets regarding its domestic business in India to Delhivery. Delhivery, established in 2011 as a hyperlocal logistics company, holds a significant market share in the business-to-consumer e-commerce logistics space, though its business-to-business service estimates for approximately 80% of its profits.

Delhivery’s logistics services are given to companies and persons who work across different business models and are present over the value chain (individuals, big brands, small and medium enterprises, e-commerce platforms etc.).

FedEx India offers end-to-end logistics solutions in India under the FedEx brand, including express parcel deliveries, total and less-than-truckload transportation services, and warehousing and supply chain management/third party logistics services. FedEx India provides to B2B, B2C and C2C (Retail) customers and offers a wide variety of shipping resolutions for all business needs.

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