Patchworks, the leading integration platform for modern retail, has closed a £5m funding round to drive its next stage of growth. The round was led by Gresham House Ventures, Patchworks’ main investor, with growth lending from Palatine Growth Credit.
The new funding builds on the company’s strong momentum – with annual recurring revenue up more than 41% year-on-year – and will be invested in:
- expanding sales and marketing to reach more enterprise retailers and brands
- driving growth in the North American market, building on early traction in the region
- continuing to invest in product development to ensure the platform remains best-in-class, including new AI features
Responding to a growing need for retail system integration
Without integration platforms, many retailers struggle with systems that don't talk to each other. This can lead to overselling stock they don't have, delayed or lost orders, chaotic fulfillment during busy sales periods, and huge amounts of manual data entry between websites, warehouses, and finance systems. The result is frustrated customers, wasted staff time, and, in some cases — like Target Canada, or Debenhams and BHS in the UK - serious operational failures that contribute to business shut down.
Investment allowing for retail growth
For retailers, this investment means access to a more powerful integration platform that helps them respond to changing consumer behaviour and market pressures with the quickest possible implementation times. Patchworks enables merchants to connect retail systems across ecommerce, ERP, POS,PIM, CRM, CDP and fulfilment without long implementation cycles or heavy custom builds. The continued investment in AI will deliver smarter automation and the ability for LLMs to query Patchworks data, reducing manual work and freeing up teams to focus on growth initiatives. Expanding into North America also strengthens support for global retailers and brands operating across multiple regions, helping them scale consistently while keeping their tech stacks flexible.
Partner first growth
Patchworks’ growth is fuelled by a partner-first model, often described as its “partner flywheel”, which incentivises technology and agency partners to refer business and deliver the platform at scale. This approach ensures global delivery coverage and that the platform constantly evolves based on the current needs of the retail technology market.
Jim Herbert, CEO of Patchworks, said: “This follow-on investment is a huge vote of confidence in our platform and our strategy. Retailers and brands need flexible, future-proof infrastructure to stay competitive, and Patchworks gives them the power and speed they need. We’re doubling down on the US market, scaling our partner ecosystem, and continuing to enhance the platform with AI and other innovations so our customers can connect, adapt and grow faster.”
Caroline Tulloch, Investment Director at Gresham House Ventures, said:
“Patchworks has gone from strength to strength since our first investment in 2021. The business has invested smartly in its product and platform, building strong fundamentals and a clear path to scale. This additional investment will help accelerate that growth, particularly in North America, and we are excited to continue supporting Jim and the team.”
William Chappel, Managing Partner at Palatine Growth Credit added:
“Patchworks sits at the heart of the modern commerce ecosystem, helping retailers unlock efficiencies and innovation. We are delighted to back its expansion strategy and support the business as it captures more market share in the fast-growing iPaaS segment.”
Patchworks as the choice for connecting commerce systems
As enterprise retailers and brands increasingly move away from rigid, legacy systems, Patchworks’ platform is becoming a go-to choice for connecting commerce systems and supporting composable and MACH-based technology stacks. With a proven track record of delivering growth, working with global partners, and winning enterprise customers, Patchworks is well positioned to continue scaling aggressively and deliver long-term value for investors.
Both Gresham House Ventures and Palatine Growth Credit bring strong sustainability and responsible investment credentials, aligning with Patchworks’ commitment to building scalable, future-ready commerce infrastructure. Eversheds Sutherland advised on the deal, offering commercial counsel to the parties.
For more information, visit: www.wearepatchworks.com
