Relay raises €33.4 million to reinvent parcel delivery for the age of e-commerce

London-based Relay, a tech company transforming the backbone of e-commerce delivery for top e-commerce retailers, announced a €33.4 million Series A round to scale their delivery network cross the U.K.

The funding round was led by Plural, including continued participation from its Seed investors, Project A and Prologis Ventures, the VC arm of global logistics real estate leader Prologis.

Relay has raised over €47.7 million in total funding.

“Logistics isn’t a transportation challenge – it’s a psychological problem grounded in complicated mathematics,” said Jonathan Jenssen, Co-founder and CEO of Relay. “At Relay, we’re using technology to build critical logistics infrastructure that brings down costs while improving delivery speed and reliability. We’ve already proven this model with some of the UK’s largest ecommerce retailers, and with support from our partners and investors, we’re ready to scale our network across the country and beyond.”

Founded in 2022 by Jonathan Jenssen (CEO) and Nicole Mazza (CCO), who previously served as UK General Manager and Commercial Director at last-mile delivery company Stuart. There, they grew the UK division from under €1.2 million in revenue to over €483 million.

Relay’s mission is to rewire the backbone of e-commerce delivery and turn a persistent cost centre into a competitive advantage for retailers. Relay’s AI-powered platform enables a decentralised delivery model using hyperlocal nodes, moving away from the inefficient ‘hub and spoke’ model used by incumbents.

By significantly reducing shipping distances, consolidating deliveries, and automating key workflows, Relay cuts operating expenses for itself and its merchants.

Its technology-first delivery model is built for efficiency, scalability and convenience, pairing flexible fleets of on-demand couriers with a distributed hyperlocal network model to reduce costs and improve customer experience.

Taavet Hinrikus, Partner at Plural, said: “There is a global opportunity to reinvent parcel delivery for the digital age. Jonathan and Nicole are the perfect pair to do this, having lived and breathed the last-mile delivery revolution for almost a decade. Their asset-light model, optimised by AI, is already leading to delivery times that are a fraction of incumbents. I look forward to working with them closely to build an ambitious new delivery platform.”

According to Relay, the global shipping market is vast and growing—forecast to reach 224 billion parcels by 2030, up from 161 billion in 2023. Much of this growth is fueled by ecommerce, which still accounts for less than 22% of retail transactions yet is accelerating due to new purchasing trends.

Relay argues that many western markets are still relying on outdated delivery networks designed for brick-and-mortar retail. As a result, retailers are under pressure: Forrester estimates they lose over €17.1 billion annually in potential sales due to shopping cart abandonment, driven largely by delivery costs and speed.

Relay leverages technology to optimise every step of the delivery lifecycle– using AI to dynamically assign parcels, fine-tune route pricing, and minimise the distance travelled reportedly up to 95% compared to incumbents.

This cost-effective and scalable model has broad appeal, attracting leading re-commerce platforms like Vinted, social commerce businesses like TikTok, international marketplaces including Temu, and leading UK retailers such as THG Fulfil.

In 2024, Relay launched a Generative AI Courier Training Tool that has reportedly boosted courier Proof-of-Delivery compliance by 82%.

Philipp Werner, Partner at Project A, said: “Since leading Relay’s Seed round, we’ve consistently been impressed by the team’s execution capabilities. This new funding round is a testament to their achievements, enabling them to further invest in their technology and expand their impressive portfolio of top-tier clients.”

Already live in major UK cities, including London and Manchester, Relay plans to expand nationwide over the next two years. Their goal is to help retailers meet surging e-commerce demand, eliminate hidden delivery costs, and drive higher conversions in an increasingly competitive marketplace.