Surry Hills-based last mile delivery service Drive Yello has announced its merger with cafe payments platform Hey You. The new entity will launch as 4You Innovation.
The merger entity is expected to hit the market next year and hopes to attract up to $15 million in investments into the company. It will likewise bring in 5,000 active vendors, 5,500 couriers, 10 million orders and 100,000 active customers.
Drive Yello founder Steve Fanale said the merger into one powerhouse will provide retailers with a single local eCommerce enablement experience to help them keep up with customer expectations.
Meanwhile, Hey You chair Peter Hammond said that the merger makes sense considering the synergies between the two business models. He added that it will enable the combined teams to develop new services to establish a client base and expand its total addressable market.
Drive Yello raised a total of $1.5 million in a Series A from Tidal Ventures last 2018 and now has a total of $7.7 million in venture capital since launching in 2014. The company also posted 150 per cent YOY growth on average for the past couple of years. Its clients include retailers Woolworths, Endeavour Drinks and Coles.
Hey You was established in 2012 as Beat the Q before it merged with.Posse, and E-Coffee Card in 2014. The following year, it rebranded as Hey You after raising $5 million then a year later raised $2 million in a Series B with Reinventure, Artesian, the Scaleup Mediafund and Alium Capital among its backers.
Mr Fanale will lead 4You Innovation alongside co-CEO Asheesh Chacko whilst the leadership teams from both Drive Yello and Hey You will remain with the new group. 4You Innovation is expected to achieve $100 million in turnover in FY23 resulting in about $13 million in revenue.
