Drizly Group Closes $50M Funding Round
Online alcohol marketplace Drizly Group has closed a $50 million Series C funding round, led by New York-based investment firm Avenir, with participation by Tiger Global and other existing investors. The investment comes as Boston-based Drizly has marked growth of more than 350% in 2020 compared with the prior year, while achieving sustained profitability.
The number of retail partners on the platform has doubled since Jan. 1, and, as consumers shift to online shopping for alcohol, a move at least partly in response to pandemic restrictions, but likely to endure beyond them, Drizly expects 20% of off-premise alcohol purchases to take place online within the next five years, versus less than 2% early this year.
Drizly operates in 235 markets across North America through a network of 3,300 independent and chain retail partners. Backed by the depth and integration of its retailer network, the company allows consumers to shop a huge assortment of beer, wine and liquor in a fully transparent shopping experience, where they can compare stores on price, delivery time, overall rating and more, with the convenience of on-demand delivery. Retailers that join Drizly experience incremental growth from new customers, with some retail partners generating more than 30% of their sales through the platform, according to the company.
“We’ve spent years methodically building the three-tier compliant e-commerce foundation for the alcohol category – a place where consumers love to shop and that retailers and brands now deem critical to their e-commerce growth strategies,” said Drizly Group CEO Cory Rellas. “This investment by Avenir, alongside other existing investors, is a vote of confidence in our industry leadership and enables us to further accelerate our product and customer growth. We look forward to further building out our offering for retailers and brands while continuing to provide a consumer experience that comprises the best place to shop for your favorite beer, wine and spirits.”
“As the largest alcohol delivery marketplace in the U.S., Drizly is rapidly bringing the $120 billion off-premise alcohol market online,” said Avenir co-founder Andrew Sugrue. “With its laser focus on alcohol delivery, Drizly provides a best-in-class consumer experience with the widest selection, best prices and fastest delivery times, while enabling retailers, wholesalers and brands to thrive in the growing online market.”
The investment will support both Drizly and Lantern, an independently operated company within Drizly Group. Rolled out in March, and currently operating in Massachusetts and Michigan, Lantern is bringing Drizly’s compliance-first approach to online cannabis commerce.