How Relay's US$35m will Transform E-Commerce Delivery

Relay, the technology company reshaping e-commerce delivery, has secured US$35m in a Series A funding round led by Plural.

The investment also sees continued support from Project A and Prologis Ventures, the venture capital arm of global logistics giant Prologis.

Relay plans to use the funding to expand its AI-driven delivery network across the UK, investing in engineering and operations to improve efficiency in the e-commerce logistics sector.

Rethinking parcel delivery for e-commerce

Relay operates a tech-enabled delivery network designed to help businesses streamline their e-commerce logistics.

By leveraging AI and machine learning, the company offers an alternative to traditional couriers such as DPD, Evri and Yodel.

Its decentralised, hyperlocal model reduces costs and improves speed, enabling retailers to offer more competitive delivery options.

Founded in 2022, Relay’s approach moves away from the conventional "hub and spoke" model, instead using local delivery nodes to reduce shipping distances. This method improves efficiency by dynamically assigning parcels, optimising routes and cutting travel distances by up to 95%.

The result is lower operational costs and faster deliveries for both merchants and customers.

Relay’s model has already attracted major e-commerce and re-commerce platforms. Clients include social commerce giants like TikTok, second-hand marketplace Vinted, international retailer Temu and UK-based THG Fulfil.

By integrating its AI-driven logistics with these businesses, Relay provides a more scalable, cost-effective delivery solution that adapts to the evolving needs of online retail.

Adapting to changing e-commerce demands

The global shipping industry is expanding rapidly, with forecasts predicting parcel volumes will reach 224 billion by 2030, up from 161 billion in 2023.

E-commerce continues to drive much of this growth, accounting for less than 22% of retail transactions but accelerating due to shifting consumer habits.

Social commerce, peer-to-peer selling and rising customer expectations for faster and cheaper deliveries are reshaping the logistics landscape.

Many Western markets still depend on traditional delivery infrastructure built for high-street retail, leading to inefficiencies. Research from Forrester suggests retailers lose more than US$18bn annually due to cart abandonment, often caused by high delivery costs and slow shipping times.

Relay aims to address these challenges by making parcel delivery more efficient, unlocking e-commerce’s potential for businesses of all sizes.

Relay’s founders, Jonathan Jenssen (CEO) and Nicole Mazza (CCO), met while working at last-mile delivery company Stuart. During their time there, they grew the UK business from under £1m (US$1.26m) to in excess of £400m (US$506.9m) in revenue.

Now, they’re using that experience to create a more efficient and scalable delivery network tailored for e-commerce.

"Logistics isn't a transportation challenge – it’s a psychological problem grounded in complicated mathematics," says Jonathan. "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 e-commerce retailers and, with support from our partners and investors, we’re ready to scale our network across the country and beyond."

Relay also focuses on improving delivery security and compliance.

In 2024, the company launched its Generative AI Courier Training Tool, which has increased proof-of-delivery compliance by 82%. By reducing fraudulent activity and streamlining support processes, Relay helps retailers avoid financial losses and operational disruptions.

Already active in major cities like London and Manchester, Relay is set to expand nationwide in the next two years. Its goal is to help retailers meet rising e-commerce demand while eliminating hidden delivery costs and improving conversion rates.

Scaling up with expert backing

Plural, the lead investor in this funding round, is an early-stage investment firm focused on technology-driven companies. 

Taavet Hinrikus, Partner at Plural, sees a huge opportunity for Relay’s model: "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."

Project A, which led Relay’s seed funding, continues to back the company in this latest round.

Partner Philipp Werner highlights the team’s strong execution. "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."

With new funding in place, Relay is set to expand its reach, refining its AI-driven delivery network to meet the growing demands of e-commerce businesses across the UK.

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