SevenFifty, an NYC-based startup that provides tech solutions for the alcoholic beverage industry, announced Monday it has closed on a $23 million Series B. The round was led by Level Equity, and caps off a year of massive growth for the company.
The alcoholic beverage industry is estimated to be worth about $1.4 trillion, and typically operates on a unique three-tier supply chain that connects buyers, distributors and retailers. For years, the system has remained fairly fragmented and tech-free, with alcohol making up just 1 percent of all e-commerce sales in 2019. This appears to be changing though, as indicated by recent deals like Uber’s $1.1 billion purchase of alcohol delivery startup Drizly.
SevenFifty is trying to disrupt the space even more with its online wholesale marketplace that provides a “de-facto system of exchange” between all three players in the supply chain, as well as sales and marketing tools. The goal is to digitize and connect what the company describes as “one of the most fragmented industries in America.”
This service has grown increasingly popular among industry players, especially amid the pandemic when almost everyone has had to take their businesses online. SevenFifty says it experienced nearly 100 percent year-over-year revenue growth last year, hitting nearly $1 billion in sales. Today, more than 90,000 restaurants and retail buyers use its platform.
“We’re extremely excited about the opportunity to play a central role in the digital transformation that has become critical to the beverage alcohol industry as a whole,” SevenFifty’s co-founder and CEO Aaron Sherman told Built In via email. “Our unique position in the market, coupled with this new funding, will allow us to scale our services and provide the connective technology layer that will serve professionals across the entire supply chain.”
Sherman also says SevenFifty plans to roughly double the size of its team to 180 people over the next year, with an emphasis on engineering, sales, operations and marketing positions.
