MEIF - Proof of Concept

Cargo bike delivery firm set to triple turnover after £4m investment

Zedify – the UK’s largest cargo bike delivery network – has secured a further £4m investment from Mercia Ventures, which was investing from its own funds and from the Midlands Engine Investment Fund (MEIF), along with Barclays Sustainable Impact Capital and Green Angel Ventures.

The funding will enable the company to expand into more cities in the UK including the launch of a new Midlands hub later this year. It also plans to enhance its technology and significantly expand its teams of riders, sales and customer care staff. Zedify expects to create 80 new jobs, including 20 in the new Midlands hub, and to triple its turnover in the year ahead.

Founded in 2018, Zedify works with major retail brands including Zara along with parcel carriers and independent businesses to provide more sustainable last mile deliveries using cargo bikes, which have been shown to save over 80% of CO2e emissions per kilometre compared to electric vans.

Currently delivering in Brighton, Bristol, Cambridge, London, Manchester, Norwich, Plymouth, Edinburgh and Glasgow, it plans to operate in 51 UK towns and cities within the next five years.

This funding round follows a £5m investment from Barclays, Mercia and Green Angel in March 2023. Since then, the company has almost doubled the size of its team from 113 to 209 and signed up national brands including Hello Fresh, Selfridges and Veja.

Rob King, co-founder and CEO of Zedify, comments: “We are seeing a real appetite from leading retail brands and UK-wide businesses looking to transform their last mile logistics and invest in more sustainable delivery models, which is why we have ambitious plans to triple in size this year. This investment will be paramount to that growth, helping us scale to meet the needs of our rapidly expanding customer base.”

Gavin Chapman, Co-Head of Principal Investments at Barclays said: “The transition to net zero emission for many sectors is not as simple as swapping from high-emitting fuels to renewables, and this is particularly true of the logistics industry. Zedify have identified that hyper-local delivery models are needed, in combination with low-carbon transport, in order to decarbonise the industry, reducing pollution within the UK’s cities.”

Ruth Coleman from Mercia Ventures added: “Zedify is making last-mile delivery more sustainable. Its business model – which includes its own zero-emission bikes, hyperlocal microhubs and its unique technology – helps to set it apart from competitors and ensure high levels of customer satisfaction. This latest funding will enable it to continue its rapid growth.”

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.