Liverpool-based Yodel, an independent parcel carrier, has secured £85 million (approximately €99.2 million) in a funding package to invest in business automation and modernization over the next three years. The funding, supported by PayPoint plc and IGF (Independent Growth Finance), will address the increasing demand for Out of Home (OOH) deliveries and the significant rise in parcel volumes through this expanding channel.
CEO Mike Hancox, who took over in June 2024, will continue to lead Yodel, maintaining a significant shareholding following the new funding. Hancox will collaborate with the existing senior management team and strategic partners, including PayPoint plc, which invested £10 million in June 2024. PayPoint operates the leading OOH network, Collect+, with over 12,000 locations across the UK.
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Capitalising on Growth
Yodel has experienced record growth over the past year, driven by new contracts and renewals with major e-commerce businesses in the UK. The demand for Out of Home operations and a 200% increase in customer-to-customer (C2C) volumes over the past two years have fueled this growth. To meet this demand, the UK-based firm has invested in its network and infrastructure, including a new 162,000 sq. ft. depot in Huyton, doubling its capacity in the North West. The company continues to make multi-million-pound investments in its fleet.
Hancox stated, “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. I must thank my colleagues and our clients, who have been very supportive while Yodel has gone through a change of ownership. We are excited to develop our Out of Home delivery offer and grateful for the support of the investors who will make this possible.”
About Yodel
Founded in 2010, Yodel delivers parcels to every postcode in the UK, operating over 49 sites nationwide to ensure timely delivery. The company partners with Guernsey Post and Jersey Post to cover all UK locations. The company serves various sectors, including fashion, health, and home goods, offering special handling for items like wine and flowers. Its services include two-hour delivery windows, real-time updates, and branded communication to enhance the delivery experience. Through Yodel Direct, SMEs and marketplace sellers can use an ad-hoc parcel-sending service with options for fully tracked Store to Store or Store to Door deliveries, providing recipients with more control over their shipments.
With this substantial investment, the startup is set to advance its automation and modernization efforts, continuing to grow and enhance its services in the competitive parcel delivery market.
