Veho Raises $125 Million Series A, with $1B Valuation, to Reinvent Package Delivery
Company grows 40X in past 15 months; General Catalyst leads round
Veho, a technology company that enables personalized next-day package delivery, today 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.
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.
"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."
About General Catalyst General Catalyst is a venture capital firm that invests in powerful, positive change that endures — for our entrepreneurs, our investors, our people, and society. We support founders with a long-term view who challenge the status quo, partnering with them from seed to growth stage and beyond to build companies that withstand the test of time. With offices in San Francisco, Palo Alto, New York City, London, and Boston, the firm has helped support the growth of businesses such as: Airbnb, Deliveroo, Guild, Gusto, Hubspot, Illumio, Lemonade, Livongo, Oscar, Samsara, Snap, Stripe, and Warby Parker.
For more: www.generalcatalyst.com.
About Veho Veho is revolutionizing ecommerce logistics with the use of technology that allows for fast, transparent, and personalized deliveries that increase customer satisfaction and drive customer lifetime value. For ecommerce brands, Veho provides a tech-forward and customer-centric delivery option to ensure that the purchase experience extends all the way through product arrival into their customers' hands. By leveraging live customer communication, in-market warehouse locations and a dynamic marketplace to seamlessly match demand for deliveries with last-mile driver-partners, Veho provides ecommerce brands with a complete solution to make delivery their competitive edge.
For more information, please visit https://shipveho.com/. SOURCE Veho