Banking giant Barclays has co-led a £5m investment round into electric cargo bike delivery company Zedify through its Sustainable Impact Capital fund.
Zedify will use the capital influx to expand its eco-delivery bikes in additional locations, including Manchester and Birmingham. Zedify said this will generate 120 jobs.
The Cambridge-founded company has created a last-mile delivery network used by businesses hailing from sectors such as grocery and healthcare. Unlike other delivery models such as Deliveroo that use self-employed gig economy workers, Zedify’s couriers are all employees.
Barclays was joined in leading the investment round by Mercia, with additional support coming from the Green Angel Syndicate.
The company separately announced it will move its headquarters to Birmingham.
Rob King, co-founder and CEO, Zedify, said: “Zedify’s model delivers tangible benefits- significant carbon reduction in the last mile; a fairer system for workers which counteracts the gig economy; cleaner, safer deliveries that contribute to healthier, more liveable cities; and more choice for consumers about how and when they receive their parcels.”
Its electric cargo bikes are currently delivering around London, Waltham Forest, Southampton, Bristol, Cambridge, Norwich, Glasgow, Edinburgh, Plymouth and Brighton.
Founded in 2018 by King and Sam Keam, the delivery network in 2020 received £1.5m from Green Angel Syndicate.
“We understand that the delivery and logistics industry will require significant investment over the coming years to align with the UK’s net zero targets,” said Gavin Chapman, co-head of principal investments at Barclays.
Barclays launched the Sustainable Impact Capital fund to invest £500m by 2027 in the “equity of fast-growing, innovative and environmentally-focused early-stage technology companies”.
It is the latest foray into the tech world by Barclays, following its growth network Eagle Labs securing a £12m government contract to take over from Tech Nation later this month.