Information on the Target

Paack, founded in late 2015 by Fernando Benito, Xavier Rosales, and Suraj Shirvankar, is the leading provider of scheduled, next-day, and same-day delivery solutions in Europe. Through its advanced technology delivery platform, Paack operates in multiple countries including Spain, the UK, France, and Portugal. The company has achieved impressive growth, demonstrating over three times top-line growth year-on-year, and currently facilitates several orders per second across its operational network, which spans over 60 cities and comprises more than 3,000 delivery partners.

Paack's diverse client base includes over 100 international clients, featuring 11 of the 15 largest e-commerce retailers in Spain. The leadership team, propelled by a commitment to operational efficiency and product innovation, has recently expanded with the addition of Olivier Colinet as Chief Technology and Product Officer, following his tenure as the CTO for Google Cloud in EMEA. This new expertise positions Paack to further enhance its software platform and delivery coverage.

Industry Overview in Spain

The logistics and delivery industry in Spain has been evolving rapidly, driven largely by the growth of e-commerce. The Covid-19 pandemic accelerated the adoption of online shopping, compelling retail businesses to adapt their logistics to meet increased consumer demands. Spain's delivery market is becoming increasingly competitive, with technological advancements allowing companies like Paack to differentiate themselves through superior service offerings.

As consumers increasingly prioritize speed and reliability in delivery services, last-mile delivery has emerged as a crucial area for innovation. Companies are leveraging technology solutions to optimize routes and manage deliveries more efficiently, thereby improving customer satisfaction. Additionally, the rising popularity of sustainable practices in logistics aligns with consumers' growing concern for environmental issues, making eco-friendly delivery solutions attractive to both businesses and customers.

Spain’s strategic location as a gateway to Europe further enhances its significance in the logistics sector. With a burgeoning infrastructure, including robust transport networks and distribution centers, companies are well-positioned to enhance their reach within the continent. According to industry reports, the Spanish logistics market is forecast to demonstrate strong growth, supported by the ongoing expansion of e-commerce operations and heightened investment in supply chain technology.

As a result, Spain is poised to become a leading market for innovation and growth within the delivery and logistics sector, attracting significant investment opportunities. The entrance of growth capital firms, such as Bregal Milestone, indicates a bullish outlook for continued development and competitive positioning in this industry.

The Rationale Behind the Deal

The $53 million Series C investment led by Bregal Milestone exemplifies a strategic move to fuel Paack’s ambitious growth trajectory across Spain and Europe. With a strong market position and an established technological foundation, Paack is now positioned to capitalize on the surging demand for efficient delivery solutions.

This partnership aims to leverage Bregal Milestone’s extensive network and strategic support, thereby enhancing Paack's capacity for operational efficiency and product development. The infusion of capital will empower Paack to further expand its delivery coverage and invest in innovative offerings, strengthening its competitive edge in the growing logistics space.

Information About the Investor

Bregal Milestone is a prominent growth capital firm with a €495 million pan-European fund focused on high-growth opportunities within the technology and technology-enabled service sectors. The firm aims to provide not only financial support but also strategic assistance to propel market-leading companies like Paack towards greater success.

Part of Bregal Investments, Bregal Milestone has a proven track record, having invested over €15 billion in various sectors. Their commitment to fostering innovation and growth in the European market aligns closely with Paack’s objectives, making them an ideal partner for this investment initiative.

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In the analysis of this investment, it is clear that Bregal Milestone’s decision to partner with Paack presents a promising opportunity to support a leading player in a thriving market. The logistics and delivery sector in Spain is witnessing remarkable growth and evolution, and Paack’s established technology platform positions it well to take advantage of this momentum.

Considering the robust performance of Paack, evidenced by its rapid growth and the caliber of its client base, the firm appears poised for even greater success. This investment should drive further technological advancements and operational improvements, enhancing the overall delivery experience for customers.

Furthermore, Bregal Milestone’s involvement offers Paack significant strategic advantages, including access to a broad network and insights to navigate the competitive landscape effectively. This collaborative approach could yield substantial returns on investment and reinforce Bregal Milestone's reputation as a leader in supporting high-growth companies.

Overall, this deal is indicative of the growing interest and investment in the logistics sector, particularly in innovative delivery solutions. If executed effectively, this partnership stands to create significant value for both Paack and its investors as the company scales its operations across Europe.

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