Retail technology platform Patchworks has secured £5 million in new funding to accelerate its expansion into the United States and scale its next generation of AI-powered integration tools for enterprise retailers.
The round, led by existing backer Gresham House Ventures with growth lending from Palatine Growth Credit, comes as the company reports a 41 per cent year-on-year increase in annual recurring revenue and deepening adoption across ecommerce and omnichannel retail.
The latest investment will be used to expand sales and marketing in North America, enhance product innovation, and embed new AI capabilities into its integration platform. Patchworks helps retailers connect and automate systems across ecommerce, ERP, POS, CRM, PIM and fulfilment channels — a critical layer for businesses managing complex, multi-system operations.
Many retailers still rely on disconnected legacy systems that cannot share information in real time, resulting in overselling, delayed orders, and costly manual processes. Failures in integration have been linked to some of retail’s biggest collapses, including Target Canada, Debenhams, and BHS, where poor data flow contributed to stock and fulfilment crises.
Patchworks’ platform aims to remove that friction by offering retailers a single, scalable integration layer. Its software connects core systems in days rather than months, giving merchants faster access to accurate data, smoother customer experiences and reduced operational risk.
The company said the new investment would help retailers “future-proof their infrastructure” and respond to fast-changing consumer behaviour.
By layering AI into its system, Patchworks plans to introduce smarter automation tools and enable large language models to query retail data directly, helping teams identify insights, streamline fulfilment, and eliminate repetitive manual tasks.
“Retailers and brands need flexible, future-proof infrastructure to stay competitive,” said Jim Herbert, chief executive of Patchworks. “This follow-on investment is a huge vote of confidence in our platform and our strategy. We’re doubling down on the US market, scaling our partner ecosystem, and continuing to enhance the platform with AI so our customers can connect, adapt and grow faster.”
Patchworks’ momentum has been driven by what the company calls its “partner flywheel” — a model that incentivises digital agencies and technology providers to deliver the platform at scale. This partner-first approach has helped it achieve global delivery coverage and maintain close alignment with the evolving needs of the retail tech ecosystem.
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 built strong fundamentals and a clear path to scale. This additional funding will accelerate 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 as it captures more market share in the fast-growing iPaaS segment.”
Patchworks has emerged as a key player in the shift toward composable and MACH-based retail technology stacks, which allow brands to assemble best-in-class tools rather than rely on monolithic systems.
The platform’s ability to integrate these modular systems has made it a go-to choice for enterprise retailers seeking agility and resilience. The company already counts several global brands among its clients and continues to strengthen its presence through partnerships with major digital agencies.
With sustainability-focused backers and a strategy aligned to long-term digital transformation, Patchworks is positioning itself as a critical enabler of retail’s next phase — one defined by connected data, automation, and adaptive infrastructure.
Herbert said: “Our mission is simple — to help retailers stay connected in a fragmented world. The commerce ecosystem is evolving fast, and our platform ensures our customers are always one step ahead.”
Eversheds Sutherland advised on the deal.
