Instabox, a next-gen technology company transforming last-mile deliveries for e-commerce, has closed a USD90 million Series B round led by EQT Ventures.
Instabox makes parcel delivery faster, more sustainable, and efficient, looking to revolutionise the industry with solutions such as fossil fuel-free locker deliveries and the newly launched completely emission-free bike delivery service Instabikes. The funding will be used to further invest in technology that will enhance the value-chain for customers and merchants, plus expansion outside of Sweden.
The global parcels market was worth almost USD430 billionn in 2019, a significant increase from USD380 billion the year previously, showing an already huge market opportunity now with unprecedented acceleration. Instabox offers fast, hassle-free delivery across its locations in Sweden – with a maximum of six hours between the merchant and the consumer – through its smart locker network, striving to revolutionise last-mile delivery.
The technology platform provides the team with real-time, end-to-end tracking of all deliveries, allowing for optimisation at each step of the way. Efficiently consolidating deliveries through a hyper-local fulfilment network brings not only speed, convenience, and cost benefits, but also creates sustainable delivery alternatives for consumers and merchants alike.
Founded in 2015 by Alexis Priftis, Staffan Gabrielsson, and Johan Lundin, the idea was originally to build an API for physical goods. Realising the difficulty of creating a new player in an ecosystem with century-old market leaders, the team started with e-commerce and approached a well-known Swedish pharmacy to deliver its packages with a same-day service to its eight smart lockers in Stockholm. In less than 15 minutes, the team had its first order. Emails from customers amazed by the speed and convenience of delivery followed. The need from consumers was obvious and so Instabox was born.
Today Instabox is the largest and fastest growing last-mile logistics startup in Sweden, growing by over 300 per cent annually and delivering more than one million parcels each month, with over two million users across the country. Norway and Denmark are also seeing rapid growth, and plans for new markets are in development.
Priftis, CEO and co-founder at Instabox, says: “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. 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.”
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.”
