Liverpool-based delivery firm Yodel has announced an £85 million investment through new ownership structure.

Yodel’s expected merger with logistics tech firm Shift will not now go ahead.

“We are delighted to announce that we have secured an £85m funding package that will enable us to invest in plans to further automate and modernise our business over the next three years,” said Yodel.

“This includes initiatives that will be rolled out in response to the acceleration of consumer Out of Home (OOH) deliveries and a material increase in parcel volumes through this fast-growing channel.

“We will continue to be led by CEO Mike Hancox, who took control of the company in June 2024.

“As CEO, Mike will retain a significant shareholding following the new funding, and will work with the existing senior management team and strategic business partners.

“This includes PayPoint plc, who made a strategic investment of £10m in June 2024, and operate the leading OOH network, Collect+, in over 12,000 locations across the UK.”

Yodel said this latest investment is supported by a consortium of investors including PayPoint plc. and IGF (Independent Growth Finance).

Yodel CEO Mike Hancox said: “I am delighted that we have secured a funding package that gives Yodel financial security into the future and the ability to continue investing in the long-term success of the business.

“I have to say thank you to my colleagues and our clients, who have been very supportive whilst Yodel has gone through a change of ownership, after many years with the Barclay family.

“We are excited to develop our Out of Home delivery offer and grateful for the support of the investors who will make this possible.”