Electric parcel delivery startup Hived has raised $42 million in fresh funding to expand its all-electric courier operations beyond London, marking a significant milestone in its mission to disrupt the UK’s legacy logistics sector.
The London-based firm, co-founded in 2021 by former Manchester City women’s youth team captain Murvah Iqbal and Mathias Krieger, plans to use the funding to expand to Bristol, Bath, and Brighton by September, with further rollouts in Birmingham and Manchester set for 2026.
Hived operates a fully electric fleet and has delivered more than 6.5 million parcels across London to date for high-profile clients including John Lewis, Uniqlo, and Zara. It employs a 250-strong courier network and boasts a 99% on-time delivery rate — a metric driven by its proprietary parcel-tracking software that integrates logistics from warehouse to doorstep.
“Parcel delivery should feel seamless, not stressful, but most of the industry is still running on systems that were never designed for ecommerce,” said CEO Iqbal, 29. “We’ve proven our model, and with this funding round, we’re ready to scale across the south of England.”
The latest round was led by NordicNinja, Europe’s largest Japan-backed venture capital firm, and includes six other new investors alongside existing backer Planet A. It brings Hived’s total capital raised to $58 million since launch.
Hived’s tech-first model is positioned as an alternative to traditional delivery firms, which Iqbal claims are hampered by legacy infrastructure. “Many were built for business-to-business deliveries or letters, not ecommerce. Their systems are too entrenched to adapt efficiently — they’d almost have to start from scratch,” she said.
The company operates its own Mercedes eActros 600 trucks, collecting pre-packed orders from clients’ warehouses and sorting them at its London hub before final delivery. It plans to establish additional sorting centres in new cities to support expansion.
Iqbal says Hived’s core strength lies in eliminating errors in the final mile. “Most of the cost in logistics comes from things going wrong — missed deliveries, customer queries, damaged goods. That’s where we come in.”
The startup’s software provides end-to-end tracking for retailers, couriers, and customers, using real-time data to optimise parcel handling. “We know down to the square foot where every parcel is in our warehouse. Out of 10,000 parcels, we might lose one or two — and that’s exceptional in this industry,” said Iqbal.
Beyond domestic growth, Hived is beginning to license its software to international partners. Iqbal recently returned from Japan, where she met Yamato Transport, which handles over six million deliveries daily. “Our tech is adaptable to different markets. We’re exploring how to embed our software into global logistics operations.”
Despite being loss-making, Hived’s efficiency and reliability are attracting major retailers seeking sustainable, tech-enabled alternatives to carbon-heavy delivery giants.
The funding signals growing investor appetite for logistics innovation and comes as e-commerce giants demand greater sustainability and precision in fulfilment. Iqbal says the company has maintained capital efficiency and resilience through a tough fundraising climate.
“Investors now want proof that every pound moves the needle,” she added. “We’ve built something efficient, scalable and customer-centric. This is just the beginning.”
