Yodel, the Liverpool-based parcel delivery firm, has secured an £85m funding package to modernise and automate its services over the next three years.
Supported by investors including PayPoint and Independent Growth Finance, this investment comes after a significant rescue deal earlier this year.
Introduction
Yodel, the Liverpool-based parcel delivery firm, has secured an £85m funding package. This financial boost is aimed at modernising and automating its services over the next three years.
The investment was facilitated by a group of investors, including PayPoint and Independent Growth Finance. This move follows a rescue deal and takeover earlier in the year.
Significant Investment for Modernisation
Yodel’s new funding will primarily focus on accelerating consumer Out of Home (OoH) deliveries. This means more flexible delivery options for customers, enhancing Yodel’s competitive edge in the market.
CEO Mike Hancox, who took control earlier this year, expressed gratitude for the support from investors and clients. He emphasised that the team is excited to develop their OoH delivery capabilities.
Growth Supported by Major Contracts
Over the past year, Yodel has seen significant growth, winning multiple new contracts and renewing existing ones with major eCommerce businesses. This growth has been driven by strong demand for OoH operations and a 200% increase in customer-to-customer (C2C) deliveries over the past two years.
To meet the rising demand, Yodel has invested heavily in its network and infrastructure. This includes the opening of a new 162,000 sq ft depot in Huyton, which doubled their capacity in the North West.
Fleet Expansion
Yodel continues to expand its fleet as part of its investment strategy. The company has made multimillion-pound investments in new vehicles to ensure it can handle increasing delivery volumes.
This fleet expansion is essential for maintaining efficiency and meeting the needs of both individual and business customers.
Leadership and Strategic Partnerships
Mike Hancox will retain a significant shareholding in Yodel following the new funding. He will continue to work closely with the senior management team and strategic partners to drive the company’s growth.
Strategic partners like PayPoint, which invested £10m in June, play a crucial role. Their Collect+ network, with over 12,000 locations, is vital for Yodel’s OoH delivery services.
Rescue Deal and Historical Context
Earlier this year, Yodel was rescued by a consortium led by YDLGP and supported by Jacob Corlett of Shift and Solano Partners. This move saved thousands of jobs and revitalised the company.
Previously owned by the Barclay family, Yodel’s turnaround highlights the importance of strategic investment and effective management.
Financial Performance and Future Prospects
Last year, Yodel delivered over 190 million parcels and generated £561.8m in revenue. Their client list includes major names like eBay and Boden.
The new funding and continued investment in technology and infrastructure position Yodel well for future growth. The company’s focus on OoH delivery and fleet expansion demonstrates its commitment to improving customer service.
Yodel’s ambitious plans, bolstered by substantial investment, underscore its commitment to modernisation and customer service.
The company’s focus on Out of Home deliveries and fleet expansion highlights its strategic vision for future growth.