A payments tech firm has made a strategic investment into parcel delivery company Yodel, which months ago was saved from the brink of collapse.
In a notice to the London Stock Exchange, PayPoint plc revealed the funding injection “alongside other partners”.
PayPoint has an existing partnership with Yodel through the former’s Collect+ division, an ‘out of home’ delivery network which operates out of over 11,000 locations.
Collect+ processed over 100 million parcel transactions in FY24. It is described as one of six key building blocks to delivering PayPoint’s target of £100 million EBITDA by the end of FY26.
The investment from PayPoint – which reports put at around £10m, with similar figures or more coming from the other investors – is intended to strengthen the partnership between the two companies.
“As a long-standing partner, we are delighted to be making a strategic investment in a key partner and that Mike Hancox and his executive team will continue to lead the Yodel business, supporting further growth through our leading parcels network, Collect+,” said Nick Wiles, CEO of PayPoint.
“As consumer behaviour continues to shift towards OOH, our continuing strategic partnership with Yodel is an important driver to delivering £100 million EBITDA by the end of FY26.”
Yodel was rescued from the brink of collapse in February by YDLGP, a newly-formed company backed by investment bank Solano Partners and the logistics firm Shift.
Counting Gousto, Argos, Vinted and Very Group among its clients, it makes more than 190m deliveries annually in the UK and generated £561.8m in revenue last year.