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. The investment will be used to expand sales and marketing to reach more enterprise retailers and brands, drive growth in the North American market where Patchworks is already gaining traction, and continue investing in product development to keep the platform best-in-class, including new AI features.
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, serious operational failures that contribute to business shut down.
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.
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.
