Relay, the AI-powered ecommerce logistics startup, has raised $35 million (£27.6 million) in a funding round led by Plural VC, the investment firm co-founded by Ian Hogarth and Taavet Hinrikus. The new capital will accelerate Relay’s expansion and enhance its AI and machine learning capabilities to lower delivery costs and reduce online shopping cart abandonment.
Jonathan Jenssen, co-founder and CEO of Relay, stated that logistics is not just a transportation challenge but a complex mathematical problem rooted in consumer psychology. He emphasized that Relay is building critical logistics infrastructure that lowers costs while improving delivery speed and reliability. He added that the company’s model has already demonstrated success with major UK ecommerce retailers and is now poised to scale nationally and internationally.
Relay has developed a decentralized delivery model using hyperlocal nodes that cut shipping distances, consolidate deliveries, and lower operating expenses. The company’s AI system assigns parcels, optimizes route pricing, and calculates the shortest possible travel distance, enabling reductions in delivery distances by up to 95% compared to traditional networks. With the ability to streamline last-mile logistics, Relay aims to address the $18 billion in lost ecommerce sales due to high delivery costs, as reported by Forrester.
Hinrikus, co-founder of Wise and a general partner at Plural, highlighted that the parcel delivery industry is overdue for reinvention, particularly in adapting to the digital economy. He stated that Relay’s asset-light, AI-optimized model is already delivering significantly faster times than traditional carriers. He expressed confidence in the leadership of Jenssen and co-founder Nicole Mazza, who bring nearly a decade of experience in last-mile delivery innovation.
Relay counts major ecommerce brands, including THG, MyProtein, and Glossybox, among its customers. The company also provides an automated workflow management platform for ecommerce retailers, further optimizing the logistics process. The latest investment follows an £8 million funding round in 2023 and includes backing from Project A and Prologis Ventures.
Featured image: Credit: Relay
