Warehow, a UK e-commerce fulfilment company specialising in fashion and homeware retail, has successfully raised GBP £2.1 million in a Series A funding round.
The investment was led by the Midlands Engine Investment Fund II through its appointed fund manager Mercia Ventures, with additional support from existing investor MENA Moonshots.
Warehow provides a service that enables retailers to sell on multiple marketplaces, including eBay, Very, Next, and John Lewis, through a single fulfilment service. The company's operations involve picking and packing items at its two warehouses located near Worksop, with shipping handled by third-party couriers. Additionally, Warehow manages the returns process for its clients.
The company was founded in 2021 by Laurence Guy, Al Gerrie, and Pete Harris as a spin-out from Guy's e-commerce business, We Are Pentagon Group. Currently, Warehow employs around 70 staff members and maintains partnerships with notable brands such as River Island, Hoover, True Religion, and Puma. Over the past year, the company has seen a doubling of its revenue.
The latest funding round brings Warehow's total raised capital to over GBP £3.75 million. The new capital will be used to further develop the company's technology, increase storage capacity in one of its existing warehouses, and enhance sales and marketing activities.
Co-founder and CEO Pete Harris remarked, "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."
Jody Tableporter, Director at the British Business Bank, added, "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 necessary technology to realise its growth ambitions."
Howard Mitchell from Mercia Ventures commented, "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."
The GBP £400 million Midlands Engine Investment Fund II aims to support SMEs throughout the Midlands, providing debt finance from GBP £25,000 to £2 million and equity investment up to GBP £5 million. The fund’s objectives include driving sustainable economic growth by supporting innovation and creating local opportunities for new and growing businesses across the region.
David Keenan of Nimbus Finance provided fundraising advice to Warehow. Legal advice to Mercia on the deal was provided by Ashley Taylor and Peter Mayhew from Shakespeare Martineau.
