Crowdsourced package delivery tech firm Veho is planning to expand its territory to build national coverage over the course of 2022 and add more warehouse automation capabilities after announcing $170 million in new investment backing today.
The “series B” round was led by Tiger Global with participation from SoftBank Vision Fund 2 as well as General Catalyst, Bling Capital, Construct Capital, Industry Ventures and Origin Ventures. It follows a $125 million “series A” venture capital round just three months ago, bringing the startup to $300 million of capital raised to date and a valuation of $1.5 billion.
New York-based Veho says its technology powers a platform that matches demand for deliveries with crowdsourced drivers. Those drivers collect packages from Veho’s warehouses and provide next-day delivery to consumers on dense, last-mile routes. The firm’s software also enables real-time rescheduling, address changes, personalized delivery instructions, and live customer support through the entire delivery journey.
In addition to growing its geography and automation, Veho plans to use the new money to scale up its recently launched “doorstep returns” program nationally and develop new features like a real-time transportation visibility (RTTV) program. In support of those goals, Veho expects to grow its headcount from nearly 500 employees today to 2,000 by end of 2022, and to invest in corporate development capabilities to evaluate opportunities for strategic acquisitions.
Investors say their new backing for Veho comes as the parcel delivery industry is straining under enormous demand and a permanent shift toward residential delivery. "As e-commerce 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," Lydia Jett, managing partner at SoftBank Investment Advisers, said in a release. "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.”
Veho has closed its $170M Series B, at a $1.5B valuation, led by Tiger Gobal with Softbank participating. This round, on the heels of our Series A, speaks to the strength of our model, and allows up to quickly scale our team, footprint and technology. https://t.co/jddnq6qQEJ— Veho (@shipveho) February 15, 2022