“India is a strategic priority,” says Fedex.

FedEx Express, a subsidiary of FedEx Corp (NYSE: FDX), has invested an amount of $100 million in Delhivery, an Indian logistics and supply chain startup, following a long-term commercial collaboration and investment agreement between the two companies. Don Colleran, President and CEO of FedEx Express will join the Delhivery Board of Directors pursuant to the deal. (FedEx)

The investment comes amidst reports that the Indian startup is working on an IPO that could launch in 2022.

The transaction

As part of the agreement, FedEx Express will focus on international export and import services to and from India, and Delhivery will, in addition to FedEx, sell FedEx Express international products and services in the India market and provide pick-up and delivery services across India.

“This strategic alliance will support our long-term vision to grow our India business and serve customers seeking to expand in or enter the Indian market, as well as provide opportunities to develop product and technology solutions together with Delhivery for the benefit of our customers,” said Raj Subramaniam, President and Chief Operating Officer of FedEx Corp.

FedEx will also transfer certain assets related to its domestic business in India to the Indian company.

Delhivery – previous fundraise

“Our aim is to bring new products and opportunities to Indian and global businesses and consumers through unique access to our networks, and our technology and engineering capabilities,” said Sahil Barua, Co-founder, and Chief Executive Officer, Delhivery, in a statement on Friday.

Earlier this year Delhivery raised $277.4 million, then said to be a pre-IPO round led by Fidelity Investments.  GIC (Gamnat Pte) and Abu Dhabi-headquartered Chimera Investments and Pacific Horizon Trust also participated. At the end of this round, the total amount raised by the startup was over $1.1 billion.

According to TechCrunch, which quoted a research report by Bernstein, the total addressable market (TAM) of Indian logistics is over $200 billion.

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