UK delivery firm Yodel has announced a significant £85 million investment to fuel its expansion plans and solidify its position in the competitive e-commerce market. This funding package will be utilised to automate operations, modernise infrastructure, and capitalise on the surging demand for out-of-home deliveries.
Back in June we reported about how Mastercard unveiled vision for secure, simplified ecommerce checkout in Europe. It’s an interesting read too.
Under the leadership of CEO Mike Hancox, who acquired a substantial stake in the company earlier this year, Yodel has embarked on a strategic transformation. The new funding, backed by a consortium of investors including PayPoint and IGF (Independent Growth Finance), marks a pivotal moment for the company.
“I am delighted that we have secured a funding package that gives Yodel financial security into the future and the ability to continue investing in the long-term success of the business,” said Mike Hancox, CEO of Yodel. “We are excited to develop our Out of Home delivery offer and grateful for the support of the investors who will make this possible.”
Capitalising on ecommerce growth
Yodel has witnessed substantial growth in recent years, driven by increased parcel volumes, particularly in the customer-to-customer (C2C) segment. The company has reported a staggering 200% uptick in C2C deliveries over the past two years, reflecting the broader e-commerce boom.
To accommodate this surge in demand, Yodel has made significant investments in its infrastructure, including the opening of a new, state-of-the-art depot in Huyton. This expansion has doubled the company’s capacity in the North West of England.
A focus on automation and modernization
The newly secured £85 million investment will be instrumental in accelerating Yodel’s automation and modernization initiatives. The company plans to introduce cutting-edge technologies to streamline operations and enhance efficiency.
PayPoint, a strategic investor and operator of the Collect+ network, will play a crucial role in supporting Yodel’s out-of-home delivery ambitions. With access to over 12,000 Collect+ locations across the UK, Yodel can expand its delivery options and provide greater convenience for consumers.
What we think about the startup
Yodel’s £85 million funding round signifies a vote of confidence in the company’s growth prospects. By investing in automation, infrastructure, and strategic partnerships, Yodel aims to strengthen its position in the highly competitive delivery market.
The company’s focus on out-of-home deliveries aligns with the evolving consumer preferences and the increasing demand for flexible delivery options. As e-commerce continues to thrive, Yodel’s ability to adapt and innovate will be crucial to its long-term success.
While the delivery industry is characterised by intense competition, Yodel’s strategic pivot and financial backing position the company for sustained growth. The coming years will be critical in determining the company’s ability to execute its plans and deliver value to its customers and investors.
