Winebuyers, an e-commerce platform that connects vineyards and wine merchants directly to the end consumer, has successfully secured its initial £525,000 funding target on equity crowdfunding platform Crowdcube. The funding round was launched last month and was recently extended. So far, it has attracted nearly 185 investors.
As previously reported, Winebuyers’ platform is customer focused, works on a completely transparent model, it doesn’t mark up prices or charge commission on any item sold. Winebuyers reported it cuts out the middleman, enabling its members to buy wines at exactly the same price as they would from the vendors themselves.
“We obtain our revenue from charging vineyards and wine merchants a monthly subscription fee to be listed on the site. This model is new to the industry, giving smaller vineyards and sellers the opportunity to reach audiences they otherwise could not. Members in turn can purchase directly from the source with no additional fees. Without the overheads associated with holding stock, we can afford to work on a PCM subscription basis providing a mutually beneficial relationship to all involved.”
Winebuyers also reported it currently offers more than 27,000 different wines from 183 vendors representing 38 countries who together have a total stock value of over £10.5 million. Over £180,000 was committed to R&D work alone in 2016 and 2017, which has laid the foundations for the business model. Prior to the campaign’s overfunding, Winebuyers stated:
“We have ambitious plans for the future here at Winebuyers. Any funds raised over our £525,000 target will help us ramp up our production and scale quickly. Our intention is to raise again in November to aid our rapid expansion, we therefore have the flexibility to overfund up to £1 million this round.”
Funds from the Crowdcube round will be used to continue Winebuyer’s growth and expansion. The campaign is now set to close at the end of April.
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