London, UK – 12th July 2022 – Retail integration platform Patchworks has received a further £1.5 million in funding from growth equity specialists Gresham House Ventures to power market growth. This latest round follows an initial investment of £3.3 million in August last year. Patchworks plans to utilise the new funds to continue its expansion into Europe.
The ecommerce integration specialist had its most successful year to date, with an estimated £1.5 billion worth of orders being processed through their platform – between July 2021 and June 2022. Patchworks saw a 51 percent increase in clients and doubled its recurring revenue.
Patchworks connects key ecommerce systems, including storefronts such as Shopify and BigCommerce, ERPs, CRMs, and fulfilment solutions, allowing retailers to simplify the integration of their technology stack.
Founded in 2014, it now boasts more than 200 dynamic ecommerce customers. Over the past year, Patchworks has partnered with a wide range of innovative brands looking to create friction-free customer journeys, such as ABYL, Gym+Coffee and Trinny London. They join its existing portfolio of brands such as Huel, Gymshark, Lounge Underwear, Castore, Cox & Cox and Simba Sleep.
Patchworks has empowered many of its clients’ impressive growth since inception, with a platform capable of bulk processing power. Throughout the last year clients processed nearly 200 million transactions, around 6 a second, or 372 a minute.
Jack Humphreys, Chief Operating Officer at Lounge Underwear said: “We’ve been working with Patchworks for a few years now, utilising both their iPaaS and their new Stockr product. It’s great to see them grow and start to reach their full potential. They have supported our growth in the time we’ve been working with them and really helped us get to where we are today, including supporting us to grow 215 percent, and placing 6th in this year’s The Sunday Times Hundred 2022.”
Simon Drane, Chairman of Patchworks said: “Patchworks has had a phenomenal year of growth in a fast moving and expanding market. A year on from the investment from Gresham House Ventures the business has more than doubled recurring revenues, launched new products, won some amazing new clients, established a strong senior leadership team, and has now secured follow-on investment to fuel faster growth. Patchworks has had a great start to its investment period.”
James Pennington, Chief Financial Officer at Patchworks said: “The switch to online has been a real catalyst for our growth. As we head into more challenging financial times, the need to operate more efficiently by optimising existing technology stacks will be more important than ever. The importance of being able to integrate these stacks quickly and efficiently, and use the data they provide to make business critical decisions accurately will be paramount.
“We are delighted with what we’ve achieved over the last year and with the latest investment from Gresham House Ventures, accelerating our market growth will be a big focus for us over the next year,” Pennington concluded.
Patchworks has launched three innovative products in the last 12 months, including Patchworks Platform (iPaaS), Patchworks BI and Stockr. The investment has also enabled the business to increase its headcount by 53 percent. Key hires include Chief Revenue Officer – Eduardo Silva, Chief Product Officer – Conor Barr and James Pennington as Chief Financial Officer.
Rupesh Patel, Investment Director at Gresham House Ventures commented: “Middleware enables retailers to grow and save, while choosing the best tools for the job – making Patchworks the perfect business to support companies developing great customer journeys. We’re delighted to continue our investment with them as they scale up. Exciting times!”