Drop, the tech-enabled virtual wine cellar that offers wine delivery within the hour has exceeded its £300,000 equity crowdfunding target and has announced plans to overfund to £500,000 with seven days left of its Seedrs campaign.
With a pre-money valuation of £7.2m, Drop is offering 4.66% equity and has to date received £439,000 in investment from 458 investors, of which 60% are existing Drop customers.
The funding will be used to expand the business beyond London and across the UK with a target of 85 points of presence through a franchising strategy, as well as further develop the AI capabilities of the app and invest in marketing to support the national expansion.
Drop was founded by restauranters and wine enthusiasts Ian Campbell and Will Palmer, whose establishments include Covent Garden’s Seafood restaurant Parsons, The 10 Cases Bistro and Wine Bar and The Drop Wine Bar on Drury Lane, which is from where the delivery service first began. Although the delivery service was first launched in 2016, it has seen sales rapidly increase with a 300% YoY increase in January 2021.
Commenting on the success of the crowdfunding campaign, Drop co-founder, Will Palmer says: “The response has been amazing, and we are so grateful to those that have chosen to invest and be part of our growth plans. The fact that we hit our target in such a short time frame is a testament to the fact our investors believe in the business model and future for Drop. Investors have been particularly interested in the tech platform, unique offering and our plans for national expansion”
Drop co-founder, Ian Campbell, added: “It is fantastic to see that over 60% of our Seedrs raise has come from our existing Drop customers, demonstrating their belief in our model. The raise has also attracted interest from a range of investors and some new customers to the platform. There have been a number of good developments in setting up additional franchise sites in London. In addition to this we are in conversations with some great leads across the UK around opening drop locations in Edinburgh, Birmingham, Manchester and Cardiff with plans to roll out to a number of other locations across the next five years.”