Instabox raises $90m to expand last-mile delivery network

By Robert Scammell

Last-mile logistics startup Instabox has raised $90m in a Series B funding round led by EQT Ventures.

The Swedish company, which provides smart lockers and real-time delivery tracking, said it will use the funds to optimise its technology and expand across Europe.

Founded in 2015 by Alexis Priftis, Staffan Gabrielsson, and Johan Lundin, Instabox now has more than two million users across Sweden.

Last-mile delivery throws up logistical challenges, such as maintaining cost-effectiveness when small-scale deliveries need to be distributed across a larger area.

The ecommerce boom in 2020 has thrown these challenges into sharper focus for a global parcel market that was already worth some $430bn in 2019.

Instabox is aiming to solve these problems with a network of smart lockers linked together by a platform that provides live tracking of a parcel throughout its journeys.

The startup recently launched an “emission-free” bike delivery service called Instabikes.

“The shipping industry consists of ancient postal companies using fossil fuels and fossil tech – which is why we’re super-excited about this new partnership with EQT Ventures,” said Alexis Priftis, CEO and co-founder at Instabox.

“The new funding will allow us to take our super-fast, hassle-free and fossil-fuel-free shipping to millions more consumers across Europe and spark a renaissance in online shopping, just as we have done in Sweden.”

Instabox said it grew by more than 300% annually in 2020 and delivers more than 1 million parcels each month in Sweden. Norway and Denmark are also high growth geographies, the startup said.

Ashley, Partner at EQT Ventures added: “Instabox is bringing tech DNA and customer-centricity to one of the largest and oldest industries in the economy, and the market feedback is crystal clear in their fantastic growth.

“It’s a great partnership whereby we can bring our expertise to match their hunger and passion. We can’t wait to work with Alexis and team on this important mission.”

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