Just six weeks after it raised a $125 million Series A led by General Catalyst that valued it at $1 billion, delivery startup Veho is back with another massive venture capital round.
Veho, a Colorado grown technology company supporting package delivery, announced a $170 million Series B that raises its value north of $1.5 billion. In total, the company has raised $300 million in venture funding since it launched in 2016.
The company pairs a workforce of crowdsourced drivers with its technology platform to create a transparent and fast delivery service.
Veho’s platform tells package recipients the time of day when they will receive their package and when the driver is en route, and enables real-time rescheduling, address changes and personal delivery instructions.
The company said it is bringing on this additional capital as its delivery model is profitable in the “the vast majority of markets” and it prepares to scale nationally. Veho is currently operating in 15 cities across the country, including Denver, Colorado Springs and Fort Collins.
With this influx of capital, the company plans to accelerate new market launches, building national coverage over the course of 2022. Veho is also expected to expand its warehouse automation capabilities to expedite its delivery windows.
“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, Veho co-founder and CEO, in a statement. “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 Series B round was led by Tiger Global with SoftBank Vision Fund 2, and included existing investors General Catalyst, Bling Capital, Construct Capital, Industry Ventures and Origin Ventures. 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 company works with a variety of customers, from apparel and accessories companies to food and packaged goods brands. Veho has stepped up to combat supply-chain issues and delivery delays in recent months. The company reports an industry record of 99.9% average on-time performance for next-day delivery.
“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 at Tiger Global, in a statement.
Following this round, Veho expects to grow its headcount from nearly 500 employees to 2,000 by end of 2022, including hiring more than 150 additional software engineers.
The company, which previously counted Boulder as its headquarters, is in the process of moving its headquarters to New York City. Locally, Veho had about 60 employees during its last raise and expected to grow that staff by 100 this year.
Veho took part in the 2019 class of Techstars’ Boulder accelerator program and, at the time, had raised around $1 million in venture funding. The company also made Colorado Inno’s 21 Startups to Watch in 2021.
When it achieved a $1 billion valuation in December, Veho joined a number of other Colorado companies reaching unicorn status in 2021, including AgentSync, Hotel Engine, DispatchHealth, Matillion, JumpCloud and Quantum Metric.
