Investors are getting pumped about selling booze on-demand.
Drizly Inc., one of the biggest players in the market for online alcohol ordering, announced a $13 million funding round on Monday. The Boston-based company lets customers order booze online, or via a smartphone app, with the promise that it will be delivered within the hour. Drizly told The Wall Street Journal that the investment comes with a valuation of about $40 million.
Founded two years ago, Drizly partners with wine, beer and liquor retailers looking to expand their geographical reach while still managing to comply with local alcohol sales and delivery laws. The company currently serves 15 markets—including Chicago, Los Angeles, New York City and Washington, D.C. — though Drizly plans to use the new influx of funds to bring that total to 30 markets, while doubling its staff to 80 people, by the end of 2016.
“‘We’re in an industry that hasn’t moved in 80 years–since the end of Prohibition,” Drizly co-founder and CEO Nick Rellas told the Journal. “It’s a $100 billion market and less than 1% is online so that’s a compelling opportunity.”
Drizly isn’t the only company that wants people to order more booze with their phones. Startups such as BrewDrop, DrinkFly and Minibar are some of the competitors looking to compete with Drizly in various markets, while other sites with broader offerings, like Delivery.com, offer online sales of alcohol along with other products.
Monday’s financing announcement brings Drizly’s overall fundraising total to $17.8 million, which includes a $2.25 million seed investment the company landed last year from a group that included Atlas Ventures and Breakaway Ventures. The company’s latest funding round was led by venture capital firm Polaris Partners and also included other venture and strategic investors.