Next-day package delivery service Veho raised $125 million in a Series A funding round at a $1 billion valuation that was led by General Catalyst, according to a press release on Tuesday (Dec. 21).
Also participating in the funding round were Construct Capital led by Rachel Holt, Bling Capital, Industry Ventures, Fontinalis Partners and Origin Ventures.
The fresh infusion of capital is being earmarked by Veho for new talent, expansion in U.S. from 14 to 50 markets by the end of next year, and advancing technology to further improve customers’ experience.
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“We’re providing eCommerce 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 U.S. 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,” Zur said.
Veho has an industry record of 99.9% average on-time performance for next-day deliveries by tapping the right technology to offer a personalized delivery experience. That record has upped the overall satisfaction of package recipients while also fostering a deeper trust between consumers and eCommerce companies.
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Veho’s delivery options gives eCommerce brands top service that centers on customer experience. The company works with major apparel and accessory brands, as well as food and packaged good companies. The firms Veho has worked with have experienced a 20% increase in customer repurchase and a 40% increase in customer lifetime value.
“The role of last-mile logistics in eCommerce 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.
