Vivino Secures $155 Million in Series D Funding

For wine enthusiasts, Vivino has become a go-to resource for recommendations. Since 2010, both the app and the company have assisted individuals in discovering superior wines. Now, the startup has successfully completed a Series D funding round, raising $155 million – exceeding the total of all its previous funding combined.

Rapid Growth and Future Plans

Driven by substantial growth, with its user base expanding from 29 million in 2018 to 50 million currently, Vivino intends to utilize this significant capital injection to enhance its core technology and personalized recommendation system. Furthermore, the company plans to broaden its reach into key global growth markets.

A Consistent Vision

Vivino distinguishes itself through the remarkable consistency of its vision since its inception. Founder and CEO Heini Zachariassen shared in an interview that the app has remained remarkably resistant to pivoting – a common occurrence in the dynamic startup landscape.

The Core Concept

“Looking back at my original pitch from 10 years ago,” Zachariassen stated, “the core idea remains the same: scan a wine bottle, then have the option to purchase it. This concept resonates with people, and it hasn’t fundamentally changed.”

He added, with a touch of humor, “Implementing this vision has proven far more challenging than articulating it.” However, the underlying principle has always remained constant.

User Experience and Marketplace

Vivino’s core value proposition drives both initial downloads and continued usage. Many users find themselves using the app while browsing wine lists at restaurants or examining selections in wine stores. The app provides a starting point for wine discovery, becoming increasingly personalized as users provide feedback on their preferences.

Vivino’s marketplace functionality allows users to purchase wines directly through the app, facilitated by partnerships with merchants of all sizes worldwide. Zachariassen emphasized the importance of maintaining high standards for these partners, as their performance directly reflects on Vivino’s reputation.

Expanding the Ecosystem

Expanding relationships with merchants across more regions is a key component of their growth strategy. Simultaneously, the company will invest heavily in refining and expanding its recommendation engine. The foundation for these improvements is already in place, notably the extensive wine database Vivino has built over the past decade.

Building the Data Foundation

“Before we even became commercially viable, our initial hurdle was data acquisition,” Zachariassen explained. “No centralized wine data existed, so we essentially built it from scratch. This involved users photographing bottles and manually entering information daily. We now have 1.5 billion images of wine labels, representing ten years of dedicated effort.”

He further noted that the wine market is characterized by highly individual tastes, a trend that has remained consistent throughout Vivino’s history. Vivino’s marketplace model, which is localized on both the supply and demand sides, is ideally suited to address the unique needs of this sector.

Strategic Timing for Funding

Zachariassen explained the rationale behind securing this substantial round of funding, particularly given the company’s previous conservative approach to fundraising. “We’ve reached a critical mass,” he said. “Last year, we experienced significant growth, achieving a quarter of a billion dollars in sales, and our unit economics are healthy.”

Scaling Operations

He continued, “Unlike some marketplaces, we’ve found that demand already exists, thanks to our 50 million users. Therefore, we focus on fulfilling that demand.”

“However, as a 200-person company operating in 17 countries, we are relatively spread thin. This funding will allow us to deepen our presence in each market and allocate more resources accordingly.”

Investing in Growth

Zachariassen also indicated that the company will increase its marketing spend to amplify its organic growth. Additionally, they plan to significantly expand their product engineering team, as users are eager for more features and functionality.

Vivino has successfully modernized a traditionally localized industry, offering the benefits of a global marketplace while preserving regional and individual preferences. The company is now poised to capitalize on the substantial untapped demand it has identified, and this new funding will be instrumental in achieving that goal.

Funding Details

The $155 million Series D round was led by Sweden’s Kinnevik, with participation from Sprints Capital, GP BullHound, and existing investor Creandum, who led the Series A round. This brings Vivino’s total funding to $221 million.