Scotch Raises $20M Series A for AI Liquor Retail OS
Scotch, a Denver-based AI-native operating system for liquor store owners, secured $20 million in a Series A funding round led by VMG Partners with participation from First Round Capital, Lerer Hippeau and Toba Capital, according to Crunchbase News.
The round follows the company’s $10 million seed round completed in September 2024 and led by First Round Capital.
Funding and Growth Metrics
Scotch reports greater than 500% year-over-year growth and more than $1 billion in processed payment volume. The company did not disclose valuation.
Platform and Operations
Scotch provides an all-in-one software ecosystem that includes point-of-sale hardware, custom software, payment processing and a back-office suite for state-by-state regulatory compliance. Customers range from single-register boutique shops to enterprise locations operating over a dozen lanes.
Revenue comes from SaaS fees charged per device per month, standard interchange fees on payment volume and hardware sales.
Technology and AI Features
The platform applies artificial intelligence to inventory management and vendor workflows for stores carrying between 2,000 and 12,000 products. The company states this reduces administrative work by more than one day per week for owners.
CTO Dan Chen previously served as chief architect at Drizly.
Background and Customers
Scotch was formally incorporated in January 2024 by founders who previously built Skupos, a convenience-store software firm acquired by PDI Technologies in August 2023. CEO Jake Bolling and CRO Kevin Hodges started Scotch after identifying gaps in liquor retail technology.
Named customers include The Liquor Store of Jackson Hole, Big Bear Wine & Liquor, Corkdorks and Everest Spirits Superstore. The company uses targeted geographic sales representatives and trade association partnerships for customer acquisition, according to Crunchbase News.
