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Narvar’s European opponent gets £80M backing from Insight Partners

parcelLab

As e-commerce becomes increasingly competitive, companies should identify opportunities by providing unique branded experiences, connecting with people post-sales, and building better relationships. 

Brands that leverage Operations Experience Management are transforming operational complexity into opportunities to outperform in the market.

Meet, parcelLab, an Operations Experience Management platform that brings people and brands closer together by closing the experience gap post-sales and beyond. 

Raised £80 million

Based out of Munich, parcelLab has secured $112 million (approx £80 million) in Series C funding led by global venture capital and private equity firm Insight Partners. Endeit Capital, along with existing investors, Capnamic Ventures, and coparion also participated. 

The funding will enable the company to accelerate global expansion, extend the product suite, expand into new sectors and search for fresh talent globally (fully remote).

Provides opportunity

Founded by Tobias Buxhoidt, Julian Krenge, and Anton Eder in 2015, parcelLab is focused on adding customer experience and visibility into online post-purchase, operational processes that are traditionally opaque and full of friction.

Household names like IKEA, Puma, and Lidl have partnered with parcelLab to transform their Operations Experiences. ParcelLab operates globally in 153 countries, is integrated with 150+ carriers, and sends out seven million pro-active and personalised communications every day. 

The company claims impressive conversion rates and performance stats, with double-digit basket increases, over 90% open rate on emails, 25% reduction in ‘Where Is My Order?’ questions, and a triple-digit increase in customer reviews.

The German company competes directly with California-based Narvar. Narvar is a customer experience platform that helps retailers inspire long-term customer loyalty, at all steps of the post-purchase journey. The company has offices in New York, London, Munich, and Paris

parcelLab in the UK

According to the company, the UK is one of the potential markets and currently works with brands like Farfetch and Bose. A part of the funding will be used to hire more staff in the UK even further across all functions. Right now, the company employs 25 people with 5 more new UK staff members joining. 

In the UK, just 4% of the brands deliver Operations Experience, and 87% end communication with their customer after dispatch, claims the company. However, the company is planning to change it. 

First investment

Notably, parcelLab is the first investment of Endeit Capital’s Fund III, which is set to invest €250 million in Europe’s digital sovereignty over the coming years. 

Tobias Buxhoidt, CEO and Founder of parcelLab, said; ‘As e-commerce becomes increasingly competitive, providing unique and branded experiences will drive growth. Identifying opportunities to further connect with people and build a better, stronger relationship is a key differentiator. Brands that are leveraging Operations Experience Management are transforming operational complexity into opportunities to overperform in the market. We’re super excited and proud to be on this journey and looking forward to disrupting new industry sectors with Operations Experience.’

Matt Gatto, Managing Director at Insight Partners, said: ‘We pride ourselves in identifying and investing in software ScaleUp companies that are driving transformative change in their industries. In parcelLab, we see the true potential to transform how brands and people connect and we are thrilled to be able to support and spearhead parcelLab’s growth and progression as they lead the Operations Experience management category into new markets and industry sectors.’

Philipp Schroeder Partner at Endeit commented on what Endeit sees in parcelLab; “The team is on a clear mission to provide their customers with a best-in-class product on a global scale. With our experience in growing businesses to more than 30 countries with a buy & build approach we have a real contribution to make here. parcelLab’s team is the perfect example of internet entrepreneurs that we want to support – entrepreneurs who can drive the change to make Europe more competitive and who have the ambition to become global market leaders.”