Patchworks, the leading integration platform for modern retail, has closed a $7m 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 fulfilment 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.
They are already trusted by brands including SoulCycle, Goodyear, Industrial Supply Group, Miniature Market,, Bisco, Supply Line Medical,Sweet Bee Organics, and LYMA Patchworks’ North American presence is underpinned by strategic partnerships with the likes of Shopify, NetSuite, Shero Commerce, Irish Titan, Astound Digital, Commerce, Codal, Swap and AWS.
Partner first growth
Patchworks’ growth is fuelled by a partner-first model, often described as its “partner flywheel”, which incentivizes 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
About Patchworks
Patchworks is the leading integration platform built for retailers. It connects your systems so they work seamlessly together — whether that’s your online store, warehouse, ERP, CRM, POS or marketplaces. By automating data flows, Patchworks helps retailers stay accurate, efficient and ready to grow.
Used by high-growth brands and leading global enterprise retailers Patchworks enables quick launches, smooth operations and better customer experiences. Its low-code platform is easy to use and flexible enough to meet complex needs, with pre-built connectors and an auto-scaling infrastructure for the busiest periods in retail.
With real-time error alerts, dashboards and full visibility across systems, you stay in control. Patchworks is ISO 27001 and SOC2 certified and built to scale with you.
Patchworks powers some of the fastest-growing names in global retail. www.wearepatchworks.com
About Gresham House Ventures and Gresham House
Gresham House Ventures is an experienced investor, providing flexible growth and secondary capital. Gresham House Ventures partners with exceptional management teams in fast growing, innovative business across a diversified range of sectors, including enterprise solutions, healthcare & education and consumer markets. The team has been working together for over 20 years and has made over 200 investments into growth businesses. https://www.greshamhouseventures.com
Gresham House Ventures is part of Gresham House, a specialist alternative asset management group that is focused on delivering financial returns for clients by investing in the global themes shaping our future. Gresham House invests across a range of strategies, with expertise in private and public equity, forestry and natural capital, sustainable infrastructure, real estate, renewable energy and battery energy storage. Gresham House is committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.
About Palatine
Palatine is a UK mid-market private equity investor focused on delivering returns through sustainable growth by building on solid foundations with a commitment to the environment and society.
We see private equity as a force for good. A positivity born of generating returns in the right way.
Founded in 2005 by partners Gary Tipper, Ed Fazakerley and Tony Dickin, we have successfully raised five Buyout Funds and we are the first private equity firm in our market to raise a returns-focused Impact Fund which is led by Beth Houghton.
Our approach is built on three solid foundations: investing in relationships, identifying the appropriate value enhancement strategies, and improving sustainability outcomes through our pioneering ESG framework.
We seek to partner with management teams across the business services, financial services, and technology sectors and our impact themes of sustainable communities, healthy living, environment & resource and sustainable choices.
We are headquartered in Manchester with offices in London and Birmingham. https://www.palatinepe.com
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