Cargo Bike Company, Zedify has secured £5m investment to expand its low carbon last mile delivery, making it available to around 20% of the UK population. The funding round was led by Barclays Sustainable Impact Capital and MEIF Proof of Concept & Early Stage Fund, which is managed by Mercia and part of the Midlands Engine Investment Fund, with additional funds from original investors, Green Angel Syndicate, and new investors, Prova.
Zedify provides sustainable ‘first and last mile’ deliveries using cargo bikes in city centres. Research by Zedify shows that its service is over 90% lower in carbon emissions per parcel than urban deliveries by electric vans, which highlights the importance of scaling cargo bike logistics to help the UK hit its net zero targets.
Following investments totalling £1.5m by Green Angel Syndicate in 2020 and 2021 -this new round of funding will enable Zedify to open in new locations including Manchester and Birmingham, as well as scaling its tech platform, for maximum consumer and business benefits.
Zedify use ‘microhubs’ at the edge of city centres to consolidate parcels. Zedify was founded in 2018 by Rob King, who had previously run a delivery business in Cambridge, and Sam Keam, who had a similar operation in Brighton. They set out to make it the ‘go-to green solution for last-mile delivery in the Uk’. The company uses only directly employed staff who are paid a real living wage and, to encourage local ownership, its network includes both depots run by Zedify and franchises.
Rob King, co-founder and CEO, said:
Zedify’s model delivers significant carbon reduction in the last mile, safer deliveries that contribute to healthier, more liveable cities; and more choice for consumers about how and when they receive their parcels. It’s exciting to have the backing of new and existing investors.
Gavin Chapman, Co-Head of Principal Investments at Barclays said:
We understand that the delivery and logistics industry will require significant investment over the coming years to align with the UK’s net zero targets. Barclays are proud to support Zedify in their goal to normalise the use of hyperlocal microhubs and zero emission delivery vehicles within UK cities.
Kiran Mehta, Investment Manager at Mercia, said:
Cargo bike delivery is a fast-growing market as councils seek to reduce congestion and pollution and consumers demand more environmentally-friendly solutions. Zedify sets itself apart from other bike delivery companies due to its unique business model and its rapid growth which has given it a ‘first mover’ advantage. The funding will enable it to make a step change in the business in the coming years.
The Midlands Engine Investment Fund is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
