Veho raises $170 million Series B venture funding
Package delivery company Veho has raised $170 million of Series B venture funding at a $1.5 billion valuation in a deal led by Tiger Global with participation from SoftBank Vision Fund 2. This comes in just two months after the start-up secured a unicorn status by closing a $125 million Series A round. Founded in 2016, Veho caters to the last-mile delivery market providing next-day delivery service.
In addition to Tiger Global, Softbank General Catalyst and other prominent institutional investors, the company is backed by many founders of notable start-ups including Allbirds, Everlane, FIGS, and Warby Parker.
The new funding has accelerated growth and expansion by facilitating plans of further investments in technology and infrastructure, opening additional locations, and acquisition of potential targets. By the year-end, Veho also plans to expand its employee strength from 500 to 2,000 by hiring for all positions, especially software engineers to support its technological developments.
The present market valuation of the last-mile delivery market exceeds $100 billion and is expected to grow to $146.96 billion by 2025. In January, the New York-based logistics platform witnessed a 40% surge in revenue and a 20% expansion of its customer base which includes HelloFresh, Misfits Market and ThredUP.
Other players in the industry including Zoomo, Cargamos, Coco, Deliverr and Bringg announced new funding rounds last year. What makes Veho outshine these competitors is the added visibility, doorstep return option to customers, and real-time communication from pickup to delivery. According to Lydia Jett, managing partner at SoftBank Investment Advisers, Veho has built a leading position in this market with an integrated technology platform that facilitates flexible and reliable delivery services, which drives conversion and customer loyalty.
