Private equity firm Lloyds Development Capital (LDC) has bought an undisclosed stake in CitySprint in a deal which values the same-day courier at £175m.

CitySprint’s management team remains the biggest shareholder in the business, and its other investor Dunedin has retained a stake in the business, but a spokesman for CitySprint said it “wasn’t as big a stake as it had previously held”.

The business said the deal will “accelerate the next stage of its growth”.

The deal comes as CitySprint said it has created a dedicated technology division, LastMileLink Technologies, which it said will accelerate its product development.

CitySprint chief executive Patrick Gallagher said: “We have a really strong partnership with Dunedin and LDC is joining us, as a key strategic investor, at a very exciting time in our business as we capitalise on our first mover advantage in the same day market.”

LDC was the financial driving force behind Whistl’s, formerly TNT Post, attempted foray into the final mile delivery market. The courier’s roll-out of the service collapsed after LDC withdrew its funding last year.