Last-mile delivery service Veho announced Tuesday that it raised a whopping $170 million in fresh financing. The massive Series B round was led by VC giant Tiger Global with participation from Softbank Vision Fund 2. Following the fresh injection of capital, the unicorn’s valuation shot up to top $1.5 billion.
The latest raise comes just a month following its oversubscribed Series A. At the time, Veho had just locked in its status as a unicorn with a valuation of $1 billion.
Veho provides its users with next-day delivery service via its network of company-operated warehouses. The company’s software platform matches increased delivery demand with crowdsourced drivers. Unlike other last-mile delivery services, Veho allows its users to reschedule or change their delivery address at any time during the travel process.
“In an incredibly complex industry that has historically lagged in innovation and customer focus, we’re bringing greater efficiency, transparency, and control,” Itamar Zur, co-founder and CEO of Veho, said in a statement.
Several e-commerce leaders use Veho to complete their last-mile deliveries including HelloFresh, Misfits Market and thredUP.
“Our brand partners are looking for an accelerated path into new markets, and more ways to bring the customer to the forefront to increase brand loyalty and lifetime value,” Zur continued.
Veho, founded in Denver in 2016, has since expanded to cover 14 new markets. The company now plans to take its headquarters to New York in order to accommodate its goal of hitting 50 new markets by the end of the year.
With the additional capital and all that extra office space, Veho is mounting a major hiring effort. The company expects to grow its headcount from nearly 500 employees to 2,000 by the end of the year. Veho is now hiring for nearly 60 open tech roles spanning multiple departments.
In addition to expanding the size of its team, the company also plans to heavily invest in its product with a goal to better its end-customer experience.
Veho has raised $300 million in venture capital financing to date, according to the company. Additional investors General Catalyst, Bling Capital and Construct Capital participated in the Series B round, among others.
