Ferovinum, a platform dedicated to funding and supply chain solutions for wine and spirits businesses, has successfully concluded a £17.5 million Series A funding round. This development marks a pivotal moment for the company, which aims to address the unique challenges in the beverage industry. These challenges include liquidity constraints, outdated supply chains, and regulatory hurdles in the global market. With these funds, Ferovinum plans to expand its market presence and enhance its service offerings.
What Drives Ferovinum’s Recent Success?
Launched in 2018 by Mitchel Fowler and Daniel Gibney, Ferovinum has facilitated the funding of over 35 million bottles for wine and spirits enterprises. The company has experienced significant growth, particularly in the UK, transacting over £170 million and exponentially increasing sales since early 2023. This growth aligns with the company’s mission to provide working capital and supply chain automation to producers until their products reach sales channels.
How Does Ferovinum’s Model Work?
Ferovinum’s business model borrows from commodity trading, offering a robust risk profile and greater flexibility. This is achieved by automating supply chains and improving data collection, which supports underwriting decisions and reduces operational costs. The company has deployed over £114 million to back UK wine and spirits producers, thereby channeling capital from markets into the industry.
The funding round was led by Notion Capital, with General Partner Jos White joining Ferovinum’s board. Other participants included Shapers VC, Semapa Next, and existing shareholders. Jos White stated,
“Ferovinum’s platform leverages technology to give small and mid-sized players in the drinks industry access to funding, and an integrated set of supply chain services. In this way they enable their customers to compete more effectively with the large corporates and, ultimately, to unlock growth. We couldn’t be more excited to invest in this industry disruptor.”
The global wine and spirits industry, valued at $800 billion, faces inefficiencies due to outdated systems. Ferovinum’s CEO, Mitchel Fowler, emphasized the company’s commitment to building technology to facilitate growth in this sector.
“At Ferovinum, we’re passionate about building technology for the sector in a way that provides the rails for the most exciting next-generation of brands and resellers to succeed. We’re so excited to have Notion Capital support us. They have a tremendous track record and team in B2B Software as a Service. Jos White will be an invaluable board member – he’s the Yoda of SaaS!”
Notion Capital’s involvement is expected to aid Ferovinum in reaching new markets and diversifying its product offerings.
Ferovinum’s recent funding achievement illustrates its ongoing commitment to addressing industry challenges. By harnessing advanced technology and strategic investments, the company is poised to make significant strides in the wine and spirits sector. The expansion into the US and European markets later this year will likely further solidify its position as a key player in the industry. New market entries may introduce additional regulatory considerations and competitive pressures that could shape the company’s strategies moving forward.
