Wine.com, the US’s leading online wine retailer, announced that it has raised $32.5 million in debt and equity financing from funds managed by Goldman Sachs Asset Management’s Private Credit Group (“GSAM PCG”). The capital will be deployed to enhance Wine.com’s customer experience, brand awareness, and scale of the company’s market-leading infrastructure.
“We’re delighted with our new partnership with Goldman Sachs Asset Management,” said Rich Bergsund, Wine.com’s CEO. “Their capital, expertise and continuing support is a game changer for Wine.com as we continue to capitalize on the unique opportunities in the online wine business.”
“We are proud to partner with a highly experienced management team that has built a best-in-class ecommerce platform serving an attractive demographic,” said Matt Singer from GSAM PCG. “Wine.com’s track record of growth and national scale creates a compelling platform and we are excited to help accelerate the company’s expansion. Our investment is consistent with our strategy to partner with and provide long-term, flexible capital solutions to high growth companies that demonstrate unique and defensible business models.”
Growth capital investments will include:
- Product Innovation – Mobile makes up over 30% of Wine.com’s revenue, and millennials make up one-third of its customers. The company will continue to invest in features and services to help customers discover the world of wine, with confidence.
- Marketing – Customers are becoming increasingly loyal, as Wine.com earns their trust through world class selection and service. With a target audience of 10 million consumers, the company will invest in new channels and approaches to build brand awareness and attract new customers.
- Infrastructure – Wine.com operates a proprietary, multi-node fulfillment network, and will invest with the objective of enabling order accuracy and timeliness at multiples of its current scale.