A new ownership structure, backed by a consortium of investors including PayPoint and IGF, will enable parcel carrier Yodel to invest in automation and modernisation plans for the business over the next three years.
Yodel will continue to be led by CEO Mike Hancox, who took control of the company in June 2024. Hancox will retain a significant shareholding following the new funding, and will work with the existing senior management team and strategic business partners, including PayPoint – which also made a strategic investment of £10mn in June.
“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.
“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.”
INTERVIEW Getting the delivery basics right with Yodel’s Mike Hancox
This latest £85mn investment will be put into initiatives that will be rolled out in response to the acceleration of consumer Out of Home (OOH) deliveries and a material increase in parcel volumes through this fast-growing channel.
Over the past year, Yodel has reported record growth with increased volumes supported by multiple new contract wins and renewals with some of the biggest and fastest growing ecommerce businesses serving the UK.
This growth has been supported by strong demand for its OOH operations and the booming customer-to-customer market (C2C), with Yodel seeing a 200% uptick in C2C volumes in the last two years.
To meet this demand, the business has continued to make significant investments in its network and infrastructure including a brand-new 162,000 sq. ft. depot in Huyton, doubling Yodel’s capacity in the North West. The business also continues to make multi-million pound investments in its fleet.
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