Diamond Logistics – a UK company that has built a national network of delivery and fulfilment providers around its unique technology platform – has secured a seven-figure loan from Frontier Development Capital (FDC) to support its further expansion.
Diamond aims to disrupt the logistics industry by bringing together small businesses or ‘partners’ and enabling them to compete with the big delivery firms. It is now one of the UK’s fastest growing eCommerce fulfilment providers, with around 40 partners throughout the country serving over 1,000 clients between them.
Its Despatchlab platform offers a complete end-to-end solution from order management to warehousing and delivery. It makes it easy for retailers to outsource warehousing and logistics to local providers and, as it integrates with over 60 online marketplaces, to manage orders from multiple sales channels. It also enables providers to manage their entire operation, streamline processes and offer same-day, overnight, national and international deliveries.
Diamond was founded over 30 years ago by Kate Lester as a courier service. While it operates its own warehouse in Guildford, with the launch of Despatchlab in 2022, it added software development to its service profile to become a technology provider. The company, which employs 15 staff, is on track to increase revenue by more than 20% in the current year to £10m. The funding package will provide additional working capital to enable it to further enhance its platform and expand its network by bringing more new partners on board.
“Our aim is to empower small operators to grow their business as part of a bigger network and with the type of advanced technology that may otherwise be beyond their budget,” said Lester. “Our platform is so efficient that it can handle 97% of logistics tasks without human intervention.
“We are also providing a valuable service to traditional logistics users as well as eCommerce businesses as logistics is not usually their speciality so outsourcing is a prudent decision. The funding will enable us to grow the network in line with our aim to ensure that every business has a Diamond Logistics partner within 45 minutes from their door.”
Kathryn Light of FDC added: “Technology is now more important than ever in logistics given the growth of eCommerce and demand for same-day deliveries. Diamond’s technology enables small firms to transform their operations and to thrive and grow in this fast-paced, competitive market. The funding will enable Kate and the team to continue to innovate and enhance the platform, and to establish the network as a leading fulfilment provider.”
A team from HMT LLP, led by director Ricky Lane, provided fundraising advice to Diamond Logistics.
Ricky Lane commented: “The transaction is an endorsement of the strength of the Diamond offering and in particular the Despatchlab platform in the third-party logistics and eCommerce fulfilment sector and the ability the technology will give the business to build scale. FDC have provided a structure that will preserve cash flow in the business as it continues to mature and scale the existing partner network.”