Chicago startup Provi, an e-commerce marketplace that’s helping bars and restaurants order alcohol more efficiently, has raised a new round of funding to bring its service to more markets.
Provi, formerly known as Tiz until it rebranded earlier this year, announced Thursday that it has raised $3.5 million in a seed funding round, led by Hyde Park Angels, Hyde Park Venture Partners, Ludlow Ventures, Sandalphon Capital and others. The startup, launched in 2016 by CEO Taylor Katzman, has now raised a total of $5 million. It raised $1.4 million in 2016 from some of the same firms and angels who are back in this latest round.
The new funding will be used to hire more employees and expand to more states. They currently operate in Illinois, Colorado and Georgia, but are looking to launch in Tennessee soon, said Katzman, who was previously the Chicago GM for Drizly, the fast-growing beer delivery app that has raised $35 million.
“This investment is more than just a validation of our technology and process," Katzman said. "It’s a major endorsement of the long hours and significant effort our team has put in. We’re excited to continue expansion with some of our top partners and to show our growth through hiring in Chicago.”
Provi’s platform connects restaurants, distributors and suppliers in the alcohol industry. It allows restaurants, bars, hotels and other places that serve booze to order what they need on one platform, instead of having to correspond with dozens of distributors individually.
“In a place like Chicago, there’s only one person that sells Miller Coors, one that sells Anheuser-Busch and one that sells Jack Daniel’s,” Katzman said. “The average bar or restaurant orders from 8-15 different alcohol distributors on a weekly basis and they place their orders via text message or email normally.”
Provi, short for "provision," also provides users data on which products are performing well at a particular location. It also makes the jobs of alcohol distributors easier by giving them a centralized platform for taking and fulfilling orders.
Some of Provi’s clients include Chicago-based Lakeshore Beverage, the third largest beer wholesaler in the U.S., and Eagle Rock Distributing Company, based in Norcross, Georgia.
Katzman wouldn’t disclose revenue or how many customers they have, but said Provi is receiving “tens of millions of dollars” in orders every month and has increased its user base by 500 percent over the past six months. In 2016, Chicago Inno reported that the startup had 115 restaurants and bars across Chicago and Milwaukee on its platform.
The startup currently employs 20 people and recently hired Nathan Mansperger, the former vice president of e-commerce at AB InBev. Provi also just moved into a new 4,000-square-foot office in the West Loop, Katzman said.
