Wine-loving startup comes of age, raises $19m to launch in 6 countries

Photo credit: Ken Hawkins.

Australian wine website Vinomofo has bagged a ripe US$19 million investment, the company announced today, no doubt over a chilled glass of sauvignon blanc. It’s the first time the startup has raised external funding in its five-year history.

The investment comes from Australian company Blue Sky Venture Capital.

The startup will use the funding to expand outside Australia and into six new markets: New Zealand, USA, UK, Singapore, Hong Kong, and China. It will start with New Zealand and wants to launch in all new markets over the next 12 months, co-founder and co-CEO André Eikmeier tells Tech in Asia.

“As we’ve learned, every country has different importing regulations, distribution, licensing – the logistics solution has been unique for each market,” he explains. “What we have seen is that in every market, regardless of how mature, our proposition of curation, value, and our mofo culture is exactly what people who love wine are looking for.”

Vinomofo plans to launch in six new markets over the next 12 months.

Vinomofo (yes, it means what you think it means) combines selling wine with a community, curation, and appreciation aspect. Before starting out as Vinomofo, the company was an online destination for wine enthusiasts to celebrate their favorite alcoholic beverage.

Numerous ups and downs and several bottles later, co-founders André Eikmeier and Justin Dry enlisted co-founder Leigh Morgan and launched Vinomofo in 2011. The idea was to leverage on their experience, connections with wine producers, and relationship with their community to offer deals on wines they really liked.

After bootstrapping for a while and looking to grow faster, Vinomofo partnered with Australian deals company Catch of the Day in 2012. But the team found it valued its independence more, so with the help of private investors, it bought itself back from the Catch group and struck back out on its own a year later.

The company now has a staff of more than 100 and serves a community of over 400,000 members.

André says that Vinomofo has achieved 100 percent year-on-year growth for the past 12 months and will surpass US$37.7 million in annual revenue this financial year. “Now it’s time to take our offer to the next level in Australia, and to the world,” he adds.

Vinomofo co-founders André Eikmeier (L) and Justin Dry. Photo credit: Vinomofo.

Wine trails

The startup feels that its focus on curation is key to being able to stand apart when it lands on its new markets.