Hot off Drizly’s announcement that the Wine & Spirits Wholesalers of America—a trade group that represents hundreds of distributors—had invested an undisclosed amount into the Boston-based booze delivery app for a minority stake, the company has now disclosed $13 million in Series A financing. The round was led by Polaris Partners, with participation from First Beverage Group and previous investor Suffolk Equity Partners. These new funds will fuel expansion for Drizly, which connects distributors, suppliers and sellers. The startup plans to invest heavily in product development, sales and marketing, operations and global distribution.
"Off-premise alcohol sales is a $100 billion business that’s untouched by technology," said Polaris Partners' Pat Kinsel, who will also be joining the Drizly Board, in a press release. "With Drizly, we are investing in a legal framework that connects alcohol supply and demand with full support of the industry players, who are all eager to see how innovation will transform their business."
This latest funding announcement follows news about Drizly's strategic alliance with the Wine and Spirits Wholesalers of America (WSWA), which enables the startup to expand its presence with retailer partners across the U.S. According to a Wall Street Journal report, association members of Wine & Spirits Wholesalers of America decided to invest in Drizly because of rising consumers expectations to be able to order products and have them delivered right from their smartphones. Danny Wirtz, president of Wirtz Beverage Group, saw an opportunity for innovation in the alcohol industry, noting that Drizly offered a “great solution to retailers, to buyers and to users to get product responsibly to consumers” on demand. As part of the deal, the trade group also secured a seat on Drizly’s board.
Currently, Drizly boasts more than 150 retail and supplier partnerships. In a news release, CEO Nick Rellas noted that Drizly spread from two cities to 15 and grew its staff from three to 42 in the past year alone.
Prior to this latest round of funding, Drizly raised $4.8 million — $2.3 million in January 2014 and $2.5 million last May. Previous backers include Suffolk Equity Partners and Continental Investors, as well as local angels including Walt Doyle, Lars Albright, Ty Danco, Fred Shilmover and Streetwise Media co-founder Chase Garbarino, to name a few.
Drizly’s goal is to be fully operating in 30 U.S. cities by the end of 2015. Two weeks ago, the startup expanded to its 13th city: Minneapolis-St. Paul.
