Cargo bike delivery company Zedify has secured a £5m investment to expand its service in the UK. The new round of funding will enable the company to open in new locations, including Manchester and Birmingham, as well as scale its tech platform.
Zedify provides sustainable first and last mile deliveries using e-cargo bikes in city centres, with clients including retail brands, national parcel carriers and local independent businesses. It is currently in 10 UK cities: London, Glasgow, Bristol, Edinburgh, Cambridge, Southampton, Brighton, Norwich, Winchester, and Plymouth.
The company says this latest investment will make its low carbon service available to around 20% of the UK population.
The funding round was led by Barclays Sustainable Impact Capital and MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund, with additional funds from original investor Green Angel Syndicate, and new investor Prova.
It follows investments totalling £1.5m by Green Angel Syndicate in 2020 and 2021.
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Rob King, co-founder and CEO, said: “Zedify’s model delivers tangible benefits - significant carbon reduction in the last mile; a fairer system for workers which counteracts the gig economy; cleaner, safer deliveries that contribute to healthier, more liveable cities; and more choice for consumers about how and when they receive their parcels.
“It’s exciting to have the backing of new and existing investors to enable us to realise our mission to transform urban logistics and create cities that are truly better for everyone.”
Zedify’s research shows that its service is over 90% lower in carbon emissions per parcel than urban deliveries by electric vans.
Gavin Chapman, co-head of principal investments at Barclays said: “We understand that the delivery and logistics industry will require significant investment over the coming years to align with the UK’s net zero targets.
“Barclays are proud to support Zedify in their goal to normalise the use of hyperlocal microhubs and zero emission delivery vehicles within UK cities.”
> Fleet of e-cargo bikes to operate from new zero emissions delivery hub in Bristol
Kiran Mehta, investment manager at Mercia, said: “Cargo bike delivery is a fast-growing market as councils seek to reduce congestion and pollution and consumers demand more environmentally-friendly solutions.
“Zedify sets itself apart from other bike delivery companies due to its unique business model and its rapid growth which has given it a ‘first mover’ advantage. The funding will enable it to make a step change in the business in the coming years."
The Midlands Engine Investment Fund is supported financially by the European Union using funding from the European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
Mark Wilcockson, senior investment manager at the British Business Bank, said: “The MEIF supports innovative business in the Midlands, with this latest investment being a great example of the funds support to promote sustainability as part of the region’s aim to reach net zero targets.
“This latest investment in Zedify shows how the MEIF continues to support businesses in relocating and investing into the region with new headquarters, creating wider growth for the Midlands.”
