Yodel has secured an £85m funding package, which its chief executive said would provide financial security and enable it to modernise the business over the next three years.

The parcel delivery company said its investment plans now included initiatives that will be rolled out in response to the growth of out of home (OOH) deliveries and an increase in parcel volumes through this channel.

The latest investment was supported by a consortium including PayPoint plc and IGF.

Yodel was acquired earlier this year by the consortium YDLGP, which carried out a comprehensive strategic review assessing its compatibility for a merger with the Shift Group and Tuffnells.

Yodel subsequently decided against this merger and will operate as a standalone entity supported by long-term investment from strategic partners, including PayPoint, under the continued leadership of chief executive Mike Hancox, who is also now a key shareholder.

Hancox will continue to work with the existing senior management team, which includes PayPoint, and will operate the OOH network Collect+ in 12,000 locations across the country.

The future plans for Tuffnells and the Shift Group will not be connected with Yodel. Yodel’s separation from Shift is also now in the public domain.

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.”

 

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