Today: Feb 12, 2025

Warehow secures £2.1 Million in series A funding to revolutionize e-commerce fulfillment

5 months ago

Warehow, an emerging player in the e-commerce fulfillment sector, has successfully raised £2.1 million in a Series A funding round. The round was led by the Midlands Engine Investment Fund II, operated by the British Business Bank, through its appointed fund manager, Mercia Ventures. 

The investment also received backing from existing investor MENA Moonshots, a notable venture capital firm with a track record of supporting innovative startups, including CorrosionRADAR and ImmuONE.

This latest investment brings Warehow’s total funding to over £3.75 million, marking a significant milestone in the company’s rapid growth trajectory.

The newly acquired funds will be directed towards three primary areas: technological development, expansion of warehouse capacity, and enhanced sales and marketing efforts. 

Specifically, Warehow aims to further refine its proprietary technology, which integrates with over 80 marketplace channels and retailers, ensuring a seamless fulfillment process for its clients.

The company also plans to increase its storage capacity within existing warehouses to accommodate the growing demand for its services.

Additionally, the funding will support Warehow’s ongoing efforts to broaden its market reach, ensuring that more businesses can access its innovative fulfillment solutions.

Jody Tableporter, Director at the British Business Bank, highlighted the strategic importance of this investment, stating, “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 realize its growth ambitions.”

Howard Mitchell, a representative of Mercia Ventures, emphasized the complex nature of e-commerce fulfillment and the potential impact of Warehow’s services: “Managing fulfillment 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 genesis of Warehow

Warehow was established in 2021 as a spin-off from We Are Pentagon Group, an e-commerce business co-founded by Laurence Guy. The idea for Warehow was born out of necessity.

Pentagon’s clients frequently requested bespoke and flexible fulfillment solutions, but the team struggled to find a single third-party partner capable of meeting their needs.

Frustrated by this gap in the market, the Pentagon team decided to bring fulfillment operations in-house, creating what would eventually become Warehow.

The success of this in-house operation, combined with growing demand from clients, led to the decision to spin off the fulfillment service as an independent entity.

The founding team, consisting of Laurence Guy, Al Gerrie, and Pete Harris, brought together a wealth of experience in e-commerce and logistics. This experience has proven invaluable as the company has grown. 

Since its inception, Warehow has expanded rapidly, employing 70 staff members and forming partnerships with leading brands such as River Island, Hoover, True Religion, and Puma.

These partnerships, along with the company’s innovative approach to fulfillment, have enabled Warehow to double its revenue over the past year.

Warehow’s service offering

Warehow offers a comprehensive fulfillment solution tailored to the needs of fashion and homeware businesses.

The company’s services are designed to simplify the complexities of e-commerce, allowing brands to sell across multiple platforms, including marketplaces like Amazon and eBay, and e-commerce platforms such as Shopify and TikTok.

Warehow handles all aspects of the fulfillment process, from storing inventory to packing and shipping orders, enabling retailers to focus on sales and customer engagement.

One of the key strengths of Warehow’s service is its flexibility. The company offers tailored solutions that cater to businesses of all sizes, from large enterprises to small and medium-sized enterprises (SMEs).

This includes B2B services for SMEs and dropshipping solutions, which can significantly reduce the operational burden on retailers.

By outsourcing fulfillment to Warehow, businesses can avoid the costly investments in IT infrastructure and logistical operations that would otherwise be necessary.

Warehow’s integration with over 80 marketplace channels and retailers is a significant advantage, allowing it to efficiently manage stock feeds, marketplace orders, and imports.

This extensive integration network streamlines operations and ensures that clients can scale their businesses without the usual headaches associated with logistics.

 

As online retail continues to expand, the demand for reliable and flexible fulfillment services is likely to increase. Warehow’s ability to meet this demand, while also offering tailored solutions for a diverse range of clients, positions it well for future growth.

However, the company’s success will depend on its ability to scale its operations while maintaining the high standards that have attracted its current client base. The influx of funds from the Series A round provides Warehow with the resources needed to invest in technology and infrastructure, which are critical for supporting this growth.

The company’s management team, led by CEO Pete Harris, will need to navigate the challenges of scaling a rapidly growing business in a competitive market.

Pete Harris remains optimistic about Warehow’s future, stating, “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.”

 

Fabrice Iranzi

Journalist and Project Leader at LionHerald, strong passion in tech and new ideas, serving Digital Company Builders in UK and beyond
E-mail: iranzi@lionherald.com

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