Pictured (LR): Mitch Fowler and Dan Gibney of Ferrovinum
Fintech Ferovinum has concluded a landmark £100m deal with NatWest and BCI Capital, marking a shift in capital deployment within the UK wine and spirits industry.
This is the first time NatWest has led portfolio financing arrangements for a wine and spirits inventory financing platform, with Ferovinum's unique supply chain technology promising greater flexibility and efficiency for businesses within the sector.
The deal consists of a £80m staged deal from NatWest, complemented by contributions from Ferovinum's equity investors and BCI Capital, Ferovinum's main portfolio funding partner since 2021. The deal will not only provide broad-based capital for wine and spirits organisations, but It also works to enhance access to capital, overcoming long-standing limitations in the industry due to its niche classification, fragmentation, and long maturity periods.
Founded in London in 2018 by Mitchell Fowler and Daniel Gibney, Ferovinum uses proprietary technology favored by more than 30 companies, including distilleries, wineries, merchants, bottlers and brand owners, offering them flexibility, speed and a partnership model. Its platform has so far financed over 5 million bottles for diverse clients, from disruptive, sustainability-focused brands like The Uncommon to iconic global whiskey brands like The Glenturret.
Mitchell Fowler, CEO of Ferovinum, commented: “We are delighted to have NatWest on board as our first banking partner in a deal that represents a real change in how capital is deployed in the wine and spirits industry.
“Ferovinum’s technology has been specifically designed to overcome barriers that have previously prevented institutional capital from accessing this sector, giving banks the right tools to participate.
“NatWest immediately recognized the potential of our platform, and we were impressed with their ability to leverage industry expertise and a shared commitment to innovation and supporting SMEs as they grow.”
Andrew Barraclough, head of asset-based lending origination at NatWest, said: “Stable access to credit is critical to the success and growth of SMEs and their positive impact on the economy. Our financing package for Ferovinum is another example of our commitment to removing barriers for enterprises, enabling Allowing it to grow Ferovinum shares our commitment to serving UK SMEs and we look forward to working with our new client in the future.
Sam Kemp, CEO of BCI Capital, added: “BCI partners with innovators, such as Ferovinum, who provide technology-enabled financing solutions to address underserved areas of the market.
“Having worked with the Ferovinum team since 2021, it has been great to witness first-hand the scaling of the business in the market.
“We are excited to continue partnering with Ferovinum – now alongside NatWest – as the business moves into its next phase of growth.”
Virovinum confirmed that £100 million will be distributed to a wide range of wine and spirits companies over the coming months. It will also support the continued development of their platform and expansion plan in the UK and globally.
