Instabox closes US$190m growth equity round and begins German expansion
Fast-growing tech company Instabox has closed a US$190 million growth equity round led by investment firm Verdane and announced plans to rapidly expand its network of intelligent parcel stations in Germany as it continues to challenge traditional shipping services and strengthen its presence throughout Europe.
The Swedish parcel locker start-up intends to use the money raised by the growth equity round to continue investing in sustainable solutions, to optimize best-in-class technology and further increase its European footprint.
Verdane meanwhile has “followed Instabox for a long time,” according to Christian Jebsen, Partner at the investment firm and a new member of the Instabox board who hopes to support Instabox to transform last-mile deliveries. “We look forward to working closely with the Instabox team to create a hassle- and fossil fuel-free future for the European consumer,” Jebsen added.
Logistics company Instabox operates more than 3,000 automated parcel lockers in Scandinavia and has continuously grown by more than 300% per year since its inception in 2015, making it one of the fastest growing start-ups in Europe. In total, Instabox delivers more than three million parcels monthly across its markets. The firm was also recently named Europe’s third fastest-growing tech company by the Financial Times in its FT1000 2022 ranking.
European growth
To date, Instabox offers both smart locker and home deliveries in Sweden, Norway, Denmark, the Netherlands, and has recently made its entry into the German market. Last week Instabox further strengthened its presence in Germany through a partnership with drugstore chain Budni.
Instabox will work with Budni, which has more than 190 branches in Germany, to rapidly expand its network of smart parcel lockers in the country. The company will set up its intelligent parcel stations in selected Budni branches in Hamburg and Berlin. With plans to roll out 1,000 lockers in Germany this year alone, this is likely to be the first of similar partnerships in the country for Instabox.
“The conclusion of a partnership with such a popular brand as Budni is an important milestone in the successful expansion of our commitment in Germany. We are convinced that people should be able to easily pick up parcels in everyday life. This makes the drugstore chain Budni a perfect partner. We increase convenience for consumers. At the same time, we reduce CO2 emissions because we deliver without fossil fuels and delivery to parcel stations is more efficient than home delivery,” commented Bram Verwer, Head of Sales, Germany, Instabox.
Alongside Germany, Instabox is expanding heavily in the Netherlands and has plans for 4,000 lockers there over the next two years. The latest additions to its Dutch network were 55 new lockers in Basic-Fit gym clubs. The two companies plan to scale the partnership up over the coming year. Instabox first entered the Dutch market in early 2021 when it acquired specialist delivery company Red je Pakketje.
Capital spending
In the US$190 million growth equity round, Verdane will roll its stake in Norwegian home delivery company Porterbuddy, acquired by Instabox earlier this year, as well as invest new capital in Instabox. The round is also backed by existing owners including Creades, EQT Ventures, Tham Special Investment AB, Nineyards, Tacito, and M2 Asset Management and several new investors.
“The global parcels market continues to grow every year, and Instabox’s lightning-quick, hassle-free, and completely fossil fuel-free shipping set us apart from traditional shipping companies. The new funding will help us build on that and further improve our service, making it even more sustainable and customer-focused,” explained Alexis Priftis, CEO and Co-founder of Instabox.