PayPoint, a payment technology company, has made a strategic investment in Yodel, a parcel delivery company. This investment aims to strengthen the partnership between the two companies, with PayPoint’s existing Collect+ division playing a key role. PayPoint’s investment, along with contributions from other partners, is reportedly around £10 million.PayPoint, a payment technology company, has made a strategic investment in Yodel, a parcel delivery company. This investment aims to strengthen the partnership between the two companies, with PayPoint’s existing Collect+ division playing a key role. PayPoint’s investment, along with contributions from other partners, is reportedly around £10 million. Yodel, which was rescued from the brink of collapse earlier this year, processes over 190 million deliveries annually and generated a turnover of £561.8 million in 2023. With customers like Gousto, Argos, Vinted, and Very Group, Yodel is a significant player in the UK delivery market. PayPoint’s CEO, Nick Wiles, emphasized the importance of the partnership with Yodel in achieving PayPoint’s target of £100 million EBITDA by the end of FY26. The strategic investment is expected to support further growth through Yodel’s extensive parcel network and PayPoint’s Collect+ platform. The investment is part of a broader trend of fintech companies expanding their offerings and partnering with other businesses. PayPoint’s investment in Yodel is a strategic move that aligns with the company’s goal of becoming a key player in the UK delivery market.
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A payment technology company has made a strategic investment in parcel delivery company Yodel, which was rescued from the brink of collapse months ago.
In a message to the London Stock Exchange, PayPoint plc announced the funding injection “together with other partners”.
PayPoint has an existing partnership with Yodel through the former Collect+ division, an ‘out of home’ delivery network that operates from more than 11,000 locations.
Collect+ processed more than 100 million parcel transactions in FY24. It is described as one of the six key building blocks to achieving PayPoint’s target of £100 million EBITDA by the end of FY26.
PayPoint’s investment – which is reported to be around £10 million, with similar figures or more from the other investors – is aimed at strengthening the partnership between the two companies.
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“As a long-standing partner, we are pleased 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 and support further growth through our industry-leading parcel network, Collect+,” said Nick Wiles, CEO of PayPoint.
“As consumer behavior continues to shift towards OOH, our ongoing strategic partnership with Yodel is a key driver to achieve £100 million EBITDA by the end of FY26.”
Yodel was rescued from the brink in February by YDLGP, a newly formed company backed by investment bank Solano Partners and logistics company Shift.
With Gousto, Argos, Vinted and Very Group among its customers, the company makes more than 190 million deliveries in Britain every year and generated a turnover of £561.8 million last year.
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