Yodel, a leading parcel carrier based in Liverpool, has announced a major funding boost of €99 million to accelerate its growth and innovation over the next three years. This significant investment will allow Yodel to enhance its automation capabilities and modernize its services, aligning with the rising demand for Out of Home (OOH) deliveries.
CEO Mike Hancox, who took over the reins in June 2024, will continue to lead the company, maintaining a significant shareholding post-funding. Hancox is set to collaborate closely with the existing senior management team and strategic business partners, including PayPoint plc. Notably, PayPoint plc invested €11.6 million in June 2024, reinforcing their partnership with Yodel through the Collect+ network, which operates over 12,000 OOH locations across the UK.
“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 Hancox.
Yodel’s recent performance underscores the company’s robust growth trajectory. Over the past year, the company has seen record-breaking growth, driven by a surge in parcel volumes and new contract wins. The burgeoning customer-to-customer (C2C) market has been a significant contributor, with C2C volumes increasing by 200% over the last two years.
To accommodate this growth, Yodel has invested heavily in its infrastructure. A new 162,000 sq. ft. depot in Huyton has doubled their capacity in the North West, complemented by substantial investments in their delivery fleet. These expansions are critical to supporting Yodel’s OOH operations and ensuring the company can meet increasing customer demands.
Hancox expressed his gratitude towards the Yodel team and clients, acknowledging their support during the company’s transition from the ownership of the Barclay family. “I have to say thank you to my colleagues and our clients, who have been very supportive whilst 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,” he added.
This funding round marks a pivotal moment for Yodel as it positions itself to further capitalize on the growing OOH delivery trend. With strategic investments and a clear vision for the future, Yodel is set to enhance its market position and continue its trajectory of rapid growth.
