Last Updated on 19/07/2021 by Khushi
Within just two months after receiving $277 million in a fundraising round, Delhivery is all set to receive another big amount, FedEx Express, a branch of courier business behemoth FedEx, is spending $100 million in Indian startup ‘Delhivery’, according to the Bernstein analysts, the Indian logistics markets are worth over $200 billion and that’s why the company wants to increase its footprints in the country. With this investment companies will engage in the long business partnership.
Delhivery will assist FedEx to sell foreign goods and services in India by offering takeaway and shipment of goods throughout the country. The goal of Friday’s funding is to provide innovative brands and prospects to Indian and international clients leveraging unique exposure to global networks, technology, and engineering skills, according to Delhivery co-founder Sahil Barua. Since the launch of the service Delhivery dispatched over 1 billion items. Apart from FedEx, Delhivery also collaborates with some of India’s top e-commerce platforms to deliver goods to over 10,000 users.
Delhivery started its business as a food delivery platform, although, with the passing time the company expanded to full-time logistics services across 2,300 Indian towns. There are very few logistic businesses in India that automated their logistics service and Delhivery is one amongst them. One of the biggest reasons for investing in Delhivery according to FedEx is the lesser involvement of brokers, enhances the efficiency of transportation modes, and ensures 24 hours delivery facility.
The Digitization of the Management of acquisition, storage, and transportation is necessary to overcome shortcomings in the Indian logistics sector to reduce the overhead expenses, fraud, losses, and disruptions caused by inadequate demand and supply strategy and forecasting. The rumors of FedEx investment arises since late last year when the company discussed its intention to spend over $40 million within two years to meet the rising demand for products amid the pandemic.