Yodel, a Liverpool-based parcel carrier, has announced a significant £85 million funding package aimed at advancing its business automation and modernization efforts over the next three years. This funding, sourced from PayPoint plc and Independent Growth Finance (IGF), will help Yodel meet the increasing demand for Out of Home (OOH) deliveries and cope with the rising parcel volumes via this expanding channel. CEO Mike Hancox, who took the reins in June 2024, will continue to lead the company, maintaining a substantial shareholding post-investment.
Yodel has previously secured investments to boost its infrastructure, such as PayPoint plc’s strategic investment of £10M in June 2024. This was part of efforts to enhance Yodel’s OOH network, Collect+, which now operates in over 12,000 locations across the UK. However, the recent funding is notably larger and is expected to significantly expedite Yodel’s automation and modernization plans. In earlier announcements, Yodel reported record growth, driven by new contracts and renewals with major UK e-commerce businesses, coupled with a 200% increase in customer-to-customer (C2C) volumes over the past two years.
Capitalizing on Growth
Over the past year, Yodel has experienced unprecedented growth, primarily attributed to new contract wins and renewals with major e-commerce players in the UK. This surge is supported by the burgeoning demand for OOH operations and a striking 200% increase in C2C parcel volumes over the past two years. To address this rising demand, Yodel has made substantial investments in its network and infrastructure, including a new 162,000 sq. ft. depot in Huyton, effectively doubling its capacity in the North West.
CEO Mike Hancox expressed his enthusiasm about the new funding, stating,
“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.”
He also extended his gratitude to the company’s staff and clients for their support during the transition period following a change of ownership from the Barclay family.
Brief about Yodel
Founded in 2010, Yodel delivers parcels to every postcode in the UK through its 49 sites nationwide. The company partners with entities like Guernsey Post and Jersey Post to cover all UK locations. Yodel serves various sectors, including fashion, health, and home goods, and provides special handling for items such as wine and flowers. Their services encompass two-hour delivery windows, real-time updates, and branded communication to enhance the delivery experience.
Yodel Direct offers SMEs and marketplace sellers a flexible parcel-sending service, featuring options for fully tracked Store to Store or Store to Door deliveries. This service aims to give recipients more control over their shipments, thereby improving customer satisfaction.
Yodel’s new funding package represents a significant milestone in its growth trajectory. The funding will enable Yodel to continue investing in its infrastructure and expanding its service offerings, particularly in the rapidly growing OOH delivery sector. This move is expected to position Yodel as a leading player in the UK parcel delivery market in the coming years.
