Company grows 40X in past 15 months; General Catalyst leads round
Veho, a technology company that enables personalized next-day package delivery, announced a $125 million Series A raise led by General Catalyst at a $1 billion valuation. Additional participants include Construct Capital led by Rachel Holt, Bling Capital, Industry Ventures, Fontinalis Partners, and Origin Ventures. The funding will be used to grow the team, expand from 14 to 50 U.S. markets by the end of 2022, and continue to improve and deepen the consumer experience through technology advancement.
With logistics and parcel delivery experiencing major setbacks the past few years, from “shipaggedon” to late deliveries plaguing the industry, Veho introduces a technology-enabled platform that is perfectly suited to handle delivery needs for today’s ecommerce brands and their customers. With an industry record 99.9% average on-time performance for next-day delivery, Veho’s technology provides a highly personalized delivery experience that increases overall satisfaction of package recipients, and facilitates deeper trust between consumers and the e-commerce brands it serves.
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The company has been rapidly growing its client base by providing clear tangible value in key strategic business metrics. Existing Veho brand partners, ranging from leading apparel and accessories companies to food and packaged goods brands, have seen a 20% increase in customer repurchase, 40% increase in customer lifetime value, and an 8-point increase in net promoter score (NPS) compared with customers who received their box from a traditional shipping company.
Giving package recipients greater insight and control, Veho lets them know the time in the day when they will receive their package, when the driver is en route, and enables real-time rescheduling, address changes, and personal delivery instructions. More than 7 in 10 recipients are choosing to interact with Veho about their package delivery, showing the company is meeting a need.
Powered by a sophisticated and dynamic crowdsourced driver marketplace, Veho’s technology seamlessly matches demand for package delivery with qualified driver partners, ensuring every package is delivered on time and correctly.
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“We’re providing e-commerce brands a fast, tech-forward and customer-centric delivery option that ensures brand perception makes it past the purchase, all the way through to the customer door,” said Veho CEO and co-founder Itamar Zur. “We avoid many of the traditional pitfalls of logistics and shipping through advanced proprietary technology, a culture that places the customer experience at the center of everything we do and our partnership with professional and qualified crowdsourced drivers. We’re in 14 US cities today and expect to be serving brand partners and consumers in every major market by the end of 2022, including introducing and scaling our doorstep returns program.”
“The role of last-mile logistics in e-commerce is more important than ever and Veho is bringing much-needed innovation to a space that has for years struggled to keep up with the dramatic increase in demand while focusing on a superior consumer experience,” said Kyle Doherty, Managing Director at General Catalyst. “Ita, Fred and the Veho team are re-imagining how delivery logistics can be architected to bring a competitive advantage to e-commerce brands while creating more opportunities for delivery professionals that choose to join the Veho platform.”