Photo credit: Veho
Veho, a startup whose software platform matches demand to crowdsourced drivers and handles deliveries and returns out of its own warehouses, has raised another $170 million to reach a $1.5 billion valuation, just six weeks after its last $125 million round made it a unicorn.
The new round was led by Tiger Global, which figures in most ecommerce and logistics funding deals these days, with participation from existing investors General Catalyst, Bling Capital, Construct Capital, Industry Ventures and Origin Ventures. Also taking part were The Chainsmokers Mantis VC Fund and the founders and CEOs of Allbirds, Everlane, FIGS, Harry’s, Flexport and Warby Parker.
Veho is currently operating in 15 U.S. locations with hubs from Chicago east to Washington, DC, as well as Florida, Texas, Arizona, Nevada, Colorado and Utah, with plans to reach national coverage by the end of 2022.[Update: Veho acquires QuikReturn, a reverse logistics startup serving ecommerce brands and their customers in the greater New York area]
One different wrinkle offered by Veho is doorstop returns, where the customer can refuse the item immediately for return via the driver, while also giving them options for when, where and how they receive their package. Like many others, it provides Uber-like tracking of delivery vehicles en route via its app.
Veho plans to expand the doorstop returns program nationally as well, and improve its warehouse automation capabilities. In addition, it will invest in new technologies such as a real-time transportation visibility (RTTV) program.
The company further plans to quadruple its headcount from 500 to 2,000, including more than 150 new software engineers, and explore possible strategic acquisitions.
“In an incredibly complex industry that has historically lagged in innovation and customer focus, we’re bringing greater efficiency, transparency, and control,” said Veho co-founder and CEO Itamar Zur in a statement. “Our brand partners are looking for an accelerated path into new markets, and more ways to bring the customer to the forefront to increase brand loyalty and lifetime value.”
Veho’s technology matches delivery demand with crowdsourced drivers, and claims a 99.9% on-time delivery rate, and a 4.9 out of 5 consumer rating. Customers include HelloFresh, Misfits Market and thredUP.