Sustainable transport company, Magway, has secured over £1.5 million in private investment to fund the next stage of the British engineering company’s plans to revolutionise the UK’s freight and delivery market.
Courtesy of Magway
The company’s planned underground ecommerce delivery network will move goods through a network of underground pipes to help tackle the explosive growth in online shopping and freight traffic and reduce the air pollution and congestion that this causes. Magway recently closed its crowdfunding round on Crowdcube raising over £1,500,000 from more than 2,200 investors in 66 countries, more than doubling its original target of £750,000. This figure is set to be boosted by additional grant funding from Innovate UK, the Government’s technology innovation agency. With international patents and finalists in Heathrow’s Innovation Award, Magway has also been recognised as a Top 100 Global Startup.
The investment will fund plans to provide short delivery routes for airports, such as Heathrow and Stansted, to alleviate local freight traffic. Magway is already talking to a number of airports, as well as online retailers and logistics firms looking for a more sustainable, reliable and ultimately affordable means of distribution. Construction of a wider UK network of pipes, spanning hundreds of kilometres, is expected to start in 2023.
“The response to our crowdfunding round has been incredible, doubling our original target” said Anna Daroy, who recently joined Magway as Managing Director and was formerly CEO of the Institute of Directors and Strategic Executive Director at the Highways Agency. “We could not ask for a better start to 2020. Our message is clear that we want to create a more sustainable and cleaner mode of transport for our roads that are under pressure and not fit for the forecast growth in traffic for both freight and e-commerce deliveries. It’s clearly a message that has hit home to our investors and we’re delighted to have them on board to support Magway in its growth plans.”
Luke Lang, co-founder at Crowdcube, added that investors are zoning in on who and what their money is supporting, focusing on purposeful initiatives that speak to their values and that Magway is a fantastic example of a company that is developing ground-breaking technology designed to meet long-term sustainability goals.