TNT Post UK has secured funding to roll-out a final mile delivery service across the UK, in a bid to rival the service currently provided by Royal Mail.

Parent PostNL has revealed a joint venture with private equity firm LDC, which will provide funding for a phased introduction of the service, which has been trialled in London and Greater Manchester.

The joint venture is expected to close in early 2014, subject to approval by the European Commission.

PostNL's executive committee member for international activities, Marcel Krom, said: “The successful trials in London have shown that TNT Post UK can build a real, profitable alternative to Royal Mail, by meeting customer’s demand for quality, innovative and cost effective services.

"PostNL is confident that the new combination will contribute to the positive development of a fast changing mail market."

Earlier this year TNT Post UK added its first alternative-fuelled vehicles to its fleet.