Cash boost for Wineries in the Philippines
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Online marketplace startup Winery Philippines has raised an undisclosed amount in a new round of financing.
It says it will use the cash to boost its sales and marketing efforts and grow its customer and vendor base. The second round of funding, backed by a consortium of private investors, gives the company a seven-digit USD valuation, tripling its value a year after its initial funding round.
Winery Philippines was conceived in 2016 by a group of wine lovers who wanted to improve access to quality wine for Filipinos, the company says. It has become a curated online wine marketplace that sells product from boutique wine importers.
According to company data, retail wine revenue in the Philippines is expected to increase annually by 9 per cent to reach US$400 million in 2021.
Winery Philippines founder/MD Chris Urbano says that while venture capital has poured into Chinese wine and spirits marketplaces over the past five years, smaller but promising markets like the Philippines are still off the radar for many investors. “Our backers see the chance to establish early market leadership amid thinner competition, higher margins and a small but profitable and fast-growing segment.”
Most of Winery Philippines’ customers are in Metro Manila, but Urbano says it is growing order volume from provincial areas and second-tier cities.
Questions & Answers
Q.What is the primary purpose of the new funding for Winery Philippines?
What is the primary purpose of the new funding for Winery Philippines?
The company intends to use the capital to enhance its sales and marketing activities, as well as expand its customer and vendor base.
Q.How has Winery Philippines' valuation changed after this funding round?
How has Winery Philippines' valuation changed after this funding round?
The new funding round has tripled the company's valuation to a seven-digit USD figure, a year after its initial funding.
Q.Why do investors find the Philippine wine market attractive, according to the founder?
Why do investors find the Philippine wine market attractive, according to the founder?
The founder states that backers see an opportunity to gain early market leadership, noting thinner competition, higher margins, and a profitable, fast-growing segment.
Q.Where are Winery Philippines' main customers currently located?
Where are Winery Philippines' main customers currently located?
Most of the company's current customers are based in Metro Manila, though order volumes from provincial and second-tier cities are growing.
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