Cargo Bike Delivery Firm Lines Up Growth After Raising £5M

An electric cargo bike delivery network which currently operates in ten UK cities has raised £5m to support plans to expand its presence and create more than 120 jobs.

Zedify has secured an investment 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 participation from existing investor Green Angel Syndicate.

It will enable the Cambridge-based company to roll out the service to more locations such as Birmingham and Manchester and more than double in size with the creation of more than 120 jobs nationwide, including 20 in the Midlands.

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. The company – which secured investments totalling £1.5m by Green Angel Syndicate in 2020 and 2021 – has doubled its revenue in each of the last four years.

King 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’s current locations include London, Waltham Forest, Southampton, Bristol, Cambridge, Norwich, Glasgow, Edinburgh, Plymouth, Brighton.

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, added: “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.”