Royal Mail invests in Mallzee
Royal Mail has acquired a stake in Mallzee, the personal shopping app which has been featured on the BBCs Dragons Den programme.
Mallzee brings together more than two million fashion items from over 100 retailers and shoppers use it to browse, ‘favourite’ and purchase.
Royal Mail said the investment will help it to align its business with the rapid growth in consumer purchases made from mobile devices. It will also provide it with exposure to new, high-growth revenue streams further up the value chain, as well as complement Royal Mail’s existing parcel services.
According to Royal Mail’s Delivery Matters 2015 report, 37% of UK online shoppers have used a mobile device to make an ecommerce purchase in the last three months. This was an increase from 35% in 2014.
Royal Mail Group is acquiring newly issued shares as part of a £2.5 million fundraising by Mallzee. Existing investors, including the Scottish Investment Bank, Par Equity and other private angel investors, are also participating in the fundraising. As part of the transaction, a Royal Mail representative will have a seat on Mallzee’s board of directors.
Nick Landon, managing director of Royal Mail Parcels, said: "I'm delighted to announce our investment in Mallzee. We think we can rapidly add significant value to the Mallzee business by introducing their solution to a wider audience. While the entrepreneurial and cutting edge mobile capabilities that Mallzee have developed will complement our existing distribution services."
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