The subsidiary of FedEx known as FedEx Express is investing a total of $100 million in Delivery, an Indian logistic startup. The investment move proves that FedEx is trying to expand its firm with its presence in the South Asian country. The deal will include a long-term commercial agreement. The focus of FedEx Express will lie on international export and import to and fro from India. On the other hand, Delhivery will focus on pickup and delivery services across the Indian market. Further, FedEx will be helping Delhivery with its assets to expand its business in India.
Sahil Barua, co-founder of Delhivery commented after gaining the investment that the company aims to bring new opportunities and products to both Indian and global businesses and consumers with the help of its network, technology and engineering capabilities. Don Colleran, the current president and chief executive of FedEx Express will soon join the board of Delhivery. FedEx Express is an international courier service that runs its operation in more than 220 countries.
The Story Of DeliveryIn the initial phase, Delhivery was a food delivery firm but then with a change in its business plan, it shifted to become a full logistic firm that serves 2,300 cities and more than 17,500 PIN codes. Delhivery is one of the few startups and courier services like Trackon that is digitizing the entire demand and supply of the lost market using a freight exchange platform. The Delivery platform further provides road transport solutions by connecting agents, consignors and truckers. By doing so, Delivery eliminates the role of the brokers. The round the clock operations of the firm is ensured through trucking which is the most popular transportation system. Digitization is important in the logistics industry to increase the efficiency required for boosting the national economy.
Poor planning and prediction of the demand and supply in the logistic industry can result in additional costs, damages, thefts and delays. Delivery till date has delivered more than one billion orders that work with almost all the popular eCommerce websites like Nykaa. Further, it has worked with more than 10,000 customers. Delhivery is also backed by SoftBank. Delivery In NumbersTill now, Delivery has fulfilled more than one million orders and have delivered these products to the households of 420 million people. Further, it has 20 automated sort centres, more than 70 fulfilment centres, 65 plus hubs. Along with that, it has supported 2,200+ direct delivery, 5,000+ partner centres and 39,200 plus team members.
The team members make it possible to make 1.5 million package deliveries in a day. In 2011, it only had 150 team members, and in 2020, it launched three new mega trucking terminals across popular cities like Bengaluru, Delhi and Mumbai. Further, it has successfully established infrastructure of 12 million sq ft. And it serves 2300 plus cities and more than 17,500 pin codes in India. With recent development with FedEx, the numbers will keep growing. Delivery is trying to change the world, one shipment at a time.
How Big Is India’s Logistics Market?The total addressable market of the Indian logistic market is more than $200 billion according to Bernstein analysts. The current valuation of Delhivery is $3 billion. It has previously raised $277 million from Fidelity and Singapore’s GIC. Also, it has secured $413 million from other investors including SoftBank. In 2019, Delhivery became a unicorn. 80% of the revenue Delhivery comes from its business-to-business service. After the latest round, Delhivery has successfully raised equity capital of $1 billion.
In the upcoming 12-15 months, the company might go public. Services of DeliveryDelivery provides three kinds of services which includes shipping services, special services and technology services. Shipping services include on-demand delivery, same-day/next-day delivery, slot-based delivery and returns management. Special services of Delhivery include product replacement/exchange services, large/oversize order delivery, high-value product delivery, HAZMAT/Dangerous good delivery. The technology services of Delhivery includes real-time monitoring and control, consignee address validation, fraud detection and flexible payment on delivery. Further, Delivery allows additional members to partner with them with three simple steps that involve signing up for constellation, selection of preferred location and then finally, start the delivery service for the customers present in that territory.
Source : Economic Times
