Logistics tech startup Veho valued at $1.5 billion in Tiger Global-led fundraise

Feb 15 (Reuters) – Veho, a startup that uses technology to facilitate next-day package delivery, raised $170 million in an early-stage funding round led by Tiger Global that valued it at $1.5 billion.

The fundraise announced on Tuesday also included SoftBank (9984.T) Vision Fund 2 and came six weeks after the company raised $125 million at a valuation of $1 billion.

San Francisco-based Veho plans to use the funds to expand across the United States, automate warehouses and quadruple its headcount to 2,000 by the end of 2022.

Its shipping platform for end-to-end deliveries has gained traction during the pandemic due to an uptick in demand for ecommerce and constraints in the supply chain.

“The parcel delivery industry is straining under enormous demand and a permanent shift toward residential delivery,” said Griffin Schroeder, partner at Tiger Global.

The round also saw participation from General Catalyst, Bling Capital, Construct Capital, Industry Ventures and Origin Ventures.

Veho also counts among its backers Mantis, the venture capital firm of American pop duo The Chainsmokers, as well as the founders and chief executive officers of sneaker-maker Allbirds Inc (BIRD.O), Flexport and eyeglass-retailer Warby Parker Inc (WRBY.N).

The company was started as a school project in 2016 by co-founder and CEO Itamar Zur while at Harvard Business School after he faced several issues receiving packages.

Last week, logistics company Flexport doubled its valuation to $8 billion in a $935 million funding round led by venture capital firms Andreessen Horowitz and MSD Partners.

Reporting by Mehnaz Yasmin in Bengaluru; Editing by Aditya Soni

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