Retail integration firm Patchworks raises £5m led by Gresham House with Palatine
This article covers a funding round on 14 October 2025 for Patchworks, the leading integration platform for modern retail, founded by Jim Herbert. The round raised £5m and was led by Gresham House Ventures, with support from Palatine Growth Credit.
What does Patchworks do?
Patchworks is an integration platform that connects retail systems such as inventory, order management and ERP. It synchronises data between systems to automate order processing, reduce manual entry and speed up retail operations.
Why is Patchworks useful?
Problem
Retailers face fragmented systems that do not communicate, causing stock errors, delayed or lost orders, and chaotic fulfilment. This creates frustrated customers, extra manual work, and risks of serious operational failure.
Solution
Patchworks explains that it connects ecommerce, ERP, POS, PIM, CRM, CDP and fulfilment systems quickly without heavy custom builds. This reduces manual data entry, speeds implementations, adds AI automation, and helps retailers scale across regions reliably.
How much did Patchworks raise?
Patchworks raised £5m in a funding round led by Gresham House Ventures, with growth lending from Palatine Growth Credit. This makes it the 12th largest funding round in October 2025 (35 recorded). It ranks 222nd of the year (507 recorded) in the Startupmag database, as of 14 October 2025.
For details on how Startupmag compiles its rankings, view our Methodology.
Who invested in Patchworks?
The key investors in the deal were the following.
- Gresham House Ventures: A UK venture firm that invests in growth-stage businesses with an emphasis on sustainability and responsible investment.
- Palatine Growth Credit: A UK growth-lending firm that provides debt facilities to scaling businesses.
In the funding announcement, Caroline Tulloch from 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.
The investor added the additional funding will help accelerate that growth, particularly in North America, and that Gresham House Ventures will continue supporting Jim and the team.
In the funding announcement, William Chappel from Palatine Growth Credit said:
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.
If you're researching potential backers in this space:
- Explore our list of saas venture capital firms in the UK
- Browse our directory of saas angel investors in the UK
Who founded Patchworks?
Jim Herbert is the founder of Patchworks.
In the funding announcement, Jim Herbert explained:
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.
The company continued the funding will allow it to double down on the US market, scale its partner ecosystem and continue to enhance the platform with AI and other innovations so customers can connect, adapt and grow faster.
Where is Patchworks based?
Patchworks is based in London, UK.
What sector is Patchworks in?
Patchworks operates in the software as a service sector. This sector provides software online that businesses use without installing it. You access tools through the internet, usually paying a subscription.
Key trends and challenges in Retail technology:
Growth of integration platforms and composable systems
Retailers adopt integration platforms to link ecommerce, ERP and fulfilment systems quickly.
Example: iPaaS reduces integration time compared with heavy custom builds.
AI and automation reshaping operations
Large language models help automate queries, support and decision making across retail systems.
Example: Bots can auto-check stock levels and flag order issues.
Omnichannel fulfilment and inventory accuracy
Poor system integration causes overselling, delayed orders and costly returns during peak trading.
Retailers need real-time stock visibility to avoid these problems.
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