The London-listed company Paypoint is in talks to invest up to £10m into one of Britain’s biggest parcel delivery companies, Yodel Shift Group. This comes just months after Yodel was rescued from the brink of collapse.
Yodel, once owned by the proprietors of The Daily Telegraph, is seeking additional funding and has engaged in discussions with several potential financial backers, including Paypoint. The talks with Paypoint are part of a broader effort to recapitalize the company, with other investors looking to inject between £10m and £40m.
Paypoint, with a market capitalization of £463m, views the investment in Yodel as a strategic move. The discussions come after YDLGP, a company backed by executives at Shift and Solano Partners, acquired Yodel in a deal announced earlier this year.
Yodel, which handles over 190 million deliveries annually and generated £561.8m in revenue last year, counts clients such as eBay and Boden. The sale of Yodel was part of efforts to restructure the Barclay family assets, with RedBird IMI repaying a £1.16bn loan owed by the Barclays to Lloyds Banking Group.
The potential investment from Paypoint could provide a much-needed boost to Yodel as it looks to modernize its operations and continue serving its wide range of clients. Stay tuned for more updates on this developing story.