Drizly Group Closes $50 Million Funding Round
BOSTON -- Drizly Group today announced that it has closed a $50 million Series C funding round, led by Avenir, a New York-based investment firm, with participation by Tiger Global and other existing investors. The investment comes as Drizly, the leader in alcohol e-commerce and delivery, has grown over 350% in 2020 as compared to 2019 while achieving sustained profitability. The number of retail partners on Drizly's platform has doubled since January 1. As consumers shift to online shopping for alcohol, Drizly expects 20 percent of off-premise alcohol purchases to be transacted online within the next five years, as compared to less than two percent in early 2020.
Drizly operates in 235 markets across North America through a network of 3,300 leading independent and chain retail partners. Underpinned by the depth and integration of its retailer network, Drizly enables consumers to shop an enormous selection of beer, wine and liquor and enjoy a fully transparent shopping experience, where they can compare stores on price, delivery time, overall rating and more - all with the convenience of on demand delivery. Retailers that join Drizly experience incremental growth from new customers, with some retail partners generating over 30% of their sales through the Drizly platform.
"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 Cory Rellas, Drizly Group's CEO. "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 Andrew Sugrue, Co-Founder of Avenir. "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. Launched in March, and currently operating in Massachusetts and Michigan, Lantern is bringing the same compliance-first approach to online cannabis commerce. Together, the Drizly and Lantern platforms will enable Drizly Group to be the preeminent platform provider for online sales of regulated consumer products.
Drizly is North America's largest e-commerce alcohol marketplace and the best way to shop beer, wine, and spirits. With the speed and convenience of on-demand delivery and shipping, Drizly partners with retailers in 235 markets to offer consumers of legal drinking age unrivaled selection and a transparent, personalized shopping experience. Backed by world-class institutional investors, Drizly partners with retailers to bring their shelves online, helping them to reach new customers, tap into key market and customer insights, and diversify their business to grow sales.
Lantern is the leading cannabis e-commerce platform, guiding customers' discovery process to help them find what may be right for them, and delivering products right to their door. Lantern brings transparency, safety, and convenient access to cannabis for both new and experienced consumers, by partnering with the best dispensaries and cannabis brands across the US, and by creating a personalized shopping and delivery experience.
Avenir is a growth stage investment firm. The firm takes a research-driven, first principles-based approach to identify how new technologies, changing consumer preferences or evolving regulatory environments will reshape large end markets. Avenir invests in high-growth, category-defining companies capitalizing on these paradigm shifts. Such investments have included Savage x Fenty, Latch, Bevi, Mark43 and Artsy, among others. Avenir was founded in 2017 and is based in New York.