China-based alcoholic beverages retailer 1919 Wines and Spirits Platform Technology is set to raise RMB2bn ($288m) in funding from e-commerce company Alibaba, according to a regulatory filing made yesterday.
The investment will value 1919 at $1bn according to China Money Network, with the publication also noting that Alibaba will become the company’s second largest shareholder, with a 29% stake.
Founded in 2010, 1919 operates an e-commerce platform for domestic and imported wine, spirits and beers. It owns branded brick-and-mortar stores but also sells its products through third-party retailers.
Alibaba’s investment will allow 1919 to pursue growth as Chinese consumer demand for wine surges. The country is expected to become the second largest market for wine, behind the US, within five years, according to a study by wine fair operator Vinexpo.
1919 listed on the National Equities Exchange and Quotations market four years ago. Its latest regulatory filing shows the business raised $2.5m through a share issuance in 2014.
The company then added $8m in January 2015 and $15.4m three months later, before raising another $23m in September the same year. It secured almost $30m in additional funding in 2016.
