UK-headquartered Warehow, an e-commerce fulfilment startup for retailers, has snapped £2.1 million in a Series A funding round led by the Midlands Engine Investment Fund II (operated by the British Business Bank) through its appointed fund manager Mercia Ventures, with support from existing investor MENA Moonshots. This investor has recently backed CorrosionRADAR and ImmuONE.
Funds utilisation
The latest investment brings the total funding raised by the company to over £3.75 million. It will enable Warehow to further develop its technology, create additional storage capacity in one of its existing warehouses, and step up its sales and marketing activities.
Jody Tableporter, Director at the British Business Bank, said: “The Midlands Engine Investment Fund II invests in ambitious and innovative SMEs in the Midlands and this recent investment in Warehow highlights the fund’s commitment to supporting growth-focused businesses. We’re thrilled this investment will help the company develop the necessary technology to realise its growth ambitions.”
Howard Mitchell of Mercia Ventures, remarked: “Managing fulfilment across multiple sales channels is a complex task. Larger retailers are often focused on physical stores and their websites, while smaller businesses may lack essential infrastructure. Warehow’s efficient warehouse operations and innovative use of technology are key drivers of its success. This funding will enable the team to scale the business and meet the increasing demand.”
How was Warehow born?
Clients kept requesting support with bespoke and flexible fulfilment needs. After becoming frustrated at not finding what was needed through a single 3rd party partner, the Pentagon team took this in house and developed effective and efficient ways to offer fulfilment support. The operation has been so successful and the demand so great that in late 2021 the board took the decision to spin the ecommerce fulfilment operation out as a standalone venture and Warehow was born.
What does the company do?
The company was founded in 2021 by Laurence Guy, Al Gerrie, and Pete Harris as a spin-out from Laurence’s e-commerce business We Are Pentagon Group. It employs 70 staff and has partnerships with leading brands such as River Island, Hoover, True Religion, and Puma. The company has doubled its revenue over the past year.
Warehow provides a complete solution for managing online orders, specifically for fashion and homeware businesses. They specialise in helping brands sell on popular platforms like marketplaces, Shopify, and TikTok, handling everything from storing inventory to packing and shipping orders. Whether you’re a large enterprise or a small business, Warehow offers tailored services to meet your needs. In addition to fashion, they also cater to small and medium-sized products in home, leisure, and tech categories. Warehow provides flexible options, including B2B services for small and medium enterprises (SMEs) and dropshipping solutions, making it easier for businesses of all sizes to thrive online.
It directly integrates 80+ marketplace channels and retailers. From Next and Asos to Amazon, eBay, and dozens of others, it manages the stock feed, marketplace, retailer orders, and imports to facilitate efficient and effective storage and fulfilment. While Warehow will store and ship, clients only take care of the selling aspect.
By letting retailers outsource all or just the non-standard elements of the fulfilment, the company helps them save on costly IT development, operational layout changes, or changes to their ways of working and enables them to focus on their primary channels.
Co-founder and CEO, Pete Harris, commented: “This funding is a significant milestone for Warehow. It will enable us to accelerate our growth trajectory and execute our business plan more effectively. We’re excited about the opportunities and challenges ahead as we continue to scale.”
What do we think about Warehow?
Warehow is revolutionising e-commerce fulfillment by offering a seamless, integrated service that enables fashion and homeware retailers to sell across multiple marketplaces efficiently. With its advanced technology and transparent pricing, the company simplifies fulfillment for businesses of all sizes, allowing them to scale without the burden of complex logistics.
