UK’s parcel carrier company Yodel bags €99.2M to boost automation and modernisation amid growth

Liverpool-based Yodel, an independently owned parcel carrier, announced that it secured £85M (approximately €99.28M) in a funding package to invest in business automation and modernisation over the next three years.

This investment, supported by PayPoint plc and IGF (Independent Growth Finance), will address the growing demand for Out of Home (OOH) deliveries and the material increase in parcel volumes through this growing channel.

CEO Mike Hancox, who took control of the company in June 2024, will continue to lead Yodel, retaining a “significant” shareholding following the new funding. 

Hancox will work with the existing senior management team and strategic business partners, including PayPoint plc, which made a strategic investment of £10M in June 2024 and operates the leading OOH network, Collect+, in over 12,000 locations across the UK.

Capitalising on growth

Over the past year, Yodel claims to have experienced “record” growth, driven by new contract wins and renewals with major e-commerce businesses in the UK. This growth is supported by demand for Out of Home operations and a 200 per cent increase in customer-to-customer (C2C) volumes over the past two years. 

To meet this demand, Yodel has invested in its network and infrastructure, including a new 162,000 sq. ft. depot in Huyton, which doubles its capacity in the North West and continues to make multi-million-pound investments in its fleet.

CEO Hancox, says, “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 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, after many years with the Barclay family. We are excited to develop our Out of Home delivery offer and grateful for the support of the investors who will make this possible.”

Brief about Yodel

Founded in 2010, Yodel claims to deliver parcels to every postcode in the UK, with over 49 sites nationwide to ensure timely delivery. It works with multiple partners including Guernsey Post and Jersey Post to cover all UK locations.

Yodel serves various sectors, including fashion, health, and home goods, and offers 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, allowing recipients more control over their shipments.