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Vivino plans further UK investment following “skyrocketing” 2020 growth

Published:  04 February, 2021

Wine app Vivino has unveiled plans for investment in one of its strongest markets, the UK, after revenues there increased 114% in just one year.

Vivino now boasts 2.4 million users in the UK, up from 2 million at the beginning of 2020. 

It is now looking to “go deeper into the UK market” as part of an investment drive to improve its hold in key markets.

Heini Zachariassen, Vivino’s founder and CEO, said: “With consumer behaviour, particularly in the UK, shifting significantly towards buying wine online, now is the time to invest where demand dictates it. With 2.4 million users in the UK and revenues doubling over the past year, we’ve reached a critical mass of demand which is clearly visible through the in-app behaviour of our users.”

With the latest round of investment, the company said it will “deepen its focus on select markets” with the greatest potential for growth. This includes the UK, the US, Germany, Italy, Japan, and Portugal.

The company has organised a number of capital raises in the past. Since its previous raise in February 2018, led by Vivino’s current board chairman and former Moët-Hennessy CEO Christophe Navarre, Vivino has increased its user base worldwide from 29 million to 50 million.

Alcohol e-commerce sales worldwide accelerated rapidly in 2020. It is estimated that by 2024, they will exceed $40 billion (IWSR).

Zachariassen credits the company’s growth to this continued shift in consumer behaviour.

“Our user retention rates are high, and we’re seeing a steady conversion of app users to wine buyers. That’s a good move in the right direction. By creating more value for our users, we also create more value for the company and industry at large,” he said.

The new funding will also support Vivino’s investment into smarter, more personalised AI, the company said.

Vivino will be able to improve its core technology and artificial intelligence platform to create better and more personalised recommendations for Vivino users.