Tiger Global leads with SoftBank Vision Fund 2 participating; new funding will expedite market expansions and consumer-focused offerings
Veho, a technology company that is revolutionizing package delivery, announced a $170 million Series B led by Tiger Global with SoftBank Vision Fund 2 participating at a $1.5+ billion valuation. The funding comes just 6 weeks after the company closed an oversubscribed A round at a $1B valuation, bringing the company to $300 million of capital raised to date. Existing investors, including General Catalyst, Bling Capital, Construct Capital, Industry Ventures and Origin Ventures, also participated in this round. Other notable investors in the company include The Chainsmokers Mantis VC Fund, and the founders and CEOs of Allbirds, Everlane, FIGS, Harry’s, Flexport, and Warby Parker.
The Veho model has demonstrated strong financial performance with the vast majority of markets already profitable today. Ecommerce brands that partner with Veho have also seen dramatic economic benefits, measuring up to 40%+ increases in customer lifetime value (LTV). With the additional capital, the company plans to accelerate new market launches, building national coverage over the course of 2022, while simultaneously expanding its warehouse automation capabilities. In addition, the company plans to scale its recently launched doorstep returns program nationally, and continue investing in the customer experience with features such as a real-time transportation visibility (RTTV) program.
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To support this rapid footprint and expansion, Veho expects to grow its headcount from nearly 500 employees today to 2,000 by end of 2022, including hiring more than 150 additional software engineers, and invest in corporate development capabilities to evaluate opportunities for strategic acquisitions.
“In an incredibly complex industry that has historically lagged in innovation and customer focus, we’re bringing greater efficiency, transparency, and control,” said Itamar Zur, co-founder and CEO, Veho. “Our brand partners are looking for an accelerated path into new markets, and more ways to bring the customer to the forefront to increase brand loyalty and lifetime value.”
“The parcel delivery industry is straining under enormous demand and a permanent shift toward residential delivery. Veho’s highly flexible and consumer-centric delivery network is an ideal solution,” said Griffin Schroeder, Partner, Tiger Global.
“As eCommerce sales continue to soar, last mile delivery capacity has not kept pace, nor have logistics companies made the technological investment necessary to support a level of customer service that is expected by a new generation of consumers,” said Lydia Jett, Managing Partner at SoftBank Investment Advisers. “We believe that 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. We are thrilled to be partnering with Itamar Zur and the team to support their mission to reinvent delivery.”
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Veho is redesigning package logistics entirely around the needs of ecommerce brands and their customers. With a network of company-operated warehouses, Veho facilitates next-day delivery from the brand’s distribution center all the way to the consumer’s door. Veho’s proprietary technology powers a platform that seamlessly matches demand for deliveries with crowdsourced drivers. These driver partners collect packages from Veho warehouses and deliver them to consumers on dense last-mile routes. This operating model enables industry-leading 99.9% on-time delivery rates.
Veho’s technology-enabled platform is perfectly suited to the delivery needs of ecommerce brands that prioritize flexibility and visibility in the customer experience, including HelloFresh, Misfits Market and thredUP. With a 4.9/5 consumer rating, Veho’s technology provides a highly personalized delivery experience, facilitating deeper trust between ecommerce brands and the consumers they serve.
Veho enables real-time rescheduling, address changes, and personalized delivery instructions, and provides live customer support through the entire delivery journey. In 1H 2022, Veho will make the end-customer experience even more seamless, giving consumers greater visibility into and control of their deliveries. The new core functions will give the consumer confidence that they will receive their delivery where, when and how they want it every single time.
In numerous A/B tests, Veho has proven a dramatic increase in every element of customer lifetime value for its ecommerce brand partners, with its doorstep returns program well-positioned to further strengthen the company’s customer-centric approach. The doorstep returns service allows consumers to have packages picked up from their doorstep with the click of a button, eliminating trips out to shipping or packaging stores.