Zedify raises £5m for UK roll-out to reach 20 per cent of the population

Cargo bike delivery network Zedify has secured a £5m investment to roll out its low-carbon service to around 20 per cent of the UK population.

Zedify provides sustainable ‘first and last mile’ deliveries using cargo bikes in city centres and its clients include major retail brands, parcel carriers and independent businesses across 10 UK city locations.

The 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. It will enable Zedify to open in new locations including Manchester and Birmingham, as well as scaling its tech platform.

Research by Zedify shows that its service is 90 per cent lower in carbon emissions per parcel than urban deliveries by electric vans. 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 tangible benefits - significant carbon reduction in the last mile, a fairer system for workers which counteracts the gig economy, cleaner, 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 to enable us to realise our mission to transform urban logistics and create cities that are truly better for everyone.”

Zedify uses ‘microhubs’ at the edge of city centres to consolidate parcels, alongside software which results in better outcomes for the climate and cities.

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.”