E-commerce fulfilment company raises £2m to meet growing demand

Warehow, a rapidly expanding e-commerce fulfilment company catering to fashion and homeware retailers, has raised £2.1m in a Series A funding round led by the Midlands Engine Investment Fund II through its appointed fund manager Mercia Ventures, with support from existing investor MENA Moonshots.

Warehow enables retailers to sell on multiple marketplaces such as eBay, Very, Next and John Lewis through one fulfilment service. Items are picked and packed at its two state-of-the-art warehouses near Worksop and shipped by third-party couriers. Warehow also manages returns processing.

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. Warehow 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.

The latest investment, which brings the total raised to over £3.75m, 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.

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.”

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 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.”

The £400m Midlands Engine Investment Fund II covers the entire Midlands region and provides debt finance from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.

David Keenan of Nimbus Finance provided fundraising advice to Warehow. Ashley Taylor and Peter Mayhew from Shakespeare Martineau provided legal advice to Mercia on the deal.

The purpose of the Midlands Engine Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the Midlands. The Midlands Engine Investment Fund II will increase the supply and diversity of early-stage finance for small businesses in the Midlands, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.

About the Midlands Engine Investment Fund II

• Operated by the British Business Bank, the Midlands Engine Investment Fund II (MEIF II) provides a mix of debt and equity funding.  MEIF II offers a range of commercial finance options with small loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support smaller businesses in the Midlands at all stages of their development.
• The funds in which the MEIF II invests are open to businesses with material operations, or planning to open material operations, in the West and East and South East Midlands.
• Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).