Swedish last-mile delivery operators Instabox AB and Budbee AB plan to merge to create a new company at a valuation of 18 billion kronor ($1.66 billion), according to an emailed statement.

The new company, Instabee, will be owned by the respective founders of the two startups as well as by Kinnevik AB, an 80-year-old investment firm started by the Stenbeck family. Other backers include Creades AB, EQT Ventures, AMF and Hennes & Mauritz AB.

The founders will “continue to play important roles” in the new venture, with Budbee founder Fredrik Hamilton becoming its chief executive and Alexis Priftis, Instabox’s founder, taking on the role of chairman of the board.

Instabox, founded in Stockholm in 2015, has expanded across Sweden, Norway, Denmark, the Netherlands and Germany with a system of lockers controlled by smart phones. Budbee initially had a focus on flexible home deliveries, but added box deliveries in 2020. The company operates across five countries (Sweden, Finland, Denmark, the Netherlands and Belgium).

“We look forward to continuing to be a leading shareholder in Instabee as its growth journey continues,” Georgi Ganev, Chief Executive of Kinnevik, said.