Drizly, whose mobile app lets consumers order alcoholic beverages online from retailers for home delivery, has raised $13 million. Polaris Partners led the Series A funding round, with participation from First Beverage Group and existing investors.
Drizly, which launched in 2012, says the capital will go toward such uses as product development, sales and marketing, operations and global distribution. Drizly CEO and co-founder Nick Rellas says Drizly operates in 15 U.S. markets and works with more than 150 beer, wine and liquor retailers.
“Off-premise alcohol sales is a $100 billion business that’s untouched by technology,” says Pat Kinsel, venture partner with Polaris Partners who will join the Drizly board. “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.”
The funding round follows an announcement earlier this month that Drizly has formed a “strategic alliance” with the Wine and Spirits Wholesalers of America, a trade group. That deal could help Drizly sign up more retailers to participate in its program, Rellas says. The agreement with the wholesalers means the trade group has essentially signaled its support for Drizly, which will give more retailers confidence in the mobile operation. “There are still plenty of folks that are skeptical about the digital world,” he says. In return, the trade group receives a “small, non-controlling interest” in Drizly along with a board seat.Favorite