Online wine marketplace startup Winery Philippines has raised an undisclosed amount in a new round of financing that it will use to boost its sales and marketing efforts and grow its customer and vendor base in the country.
In a statement on Tuesday, Winery Philippines said, the second round of funding, which was backed by a consortium of high-net-worth private investors, gives the company a seven-digit USD valuation, tripling its value a year after its initial funding round.
Winery Philippines was first conceived in 2016 by a group of wine lovers, who wanted to improve access to good quality wine for Filipinos, the company said. It has become a curated online wine marketplace that sells wines from boutique wine importers from around the world.
According to company data, retail wine revenue in the Philippines is at $300 million and is expected to increase annually by 9 per cent to reach $400 million in 2021.
“About 3 to 5 per cent, or $12 million to $20 million, is estimated to be derived from online sales channels. High demand for wine is sustained by the growing number of middle- and higher-income consumers,” Winery Philippines said.
Chris Urbano, Founder and Managing Director at Winery Philippines, revealed 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 amidst thinner competition, higher margins and a small but profitable and fast-growing segment,” he said
The company did not disclose the exact amount of funds it raised in the second round but said it will use the investment to further accelerate sales and marketing activities and fund operational capacity to service its growing customer base and vendor partners.
Winery Philippines currently serves a majority of customers in Metro Manila, but said it is growing order volume from provincial areas and second-tier cities.