Scotch, a Denver-based AI-native operating system for liquor store owners, raised $20 million in a Series A round.
Funding Round
VMG Partners led the round with participation from First Round Capital, Lerer Hippeau and Toba Capital, according to Crunchbase News. The round follows a $10 million seed round closed in September 2024 and led by First Round Capital. The company reported greater than 500% year-over-year growth and more than $1 billion in processed payment volume.
Company Background
Scotch was formally incorporated in January 2024. Co-founder and CEO Jake Bolling and CRO Kevin Hodges previously built Skupos, a convenience-store software company acquired by PDI Technologies in August 2023. CTO Dan Chen previously served as chief architect of Drizly.
Product Offering
The platform supplies point-of-sale hardware, custom software, payment processing and a back-office suite for state regulatory compliance. Revenue comes from per-device SaaS fees, interchange fees on payment volume and hardware sales. Customers include The Liquor Store of Jackson Hole, Big Bear Wine & Liquor, Corkdorks and Everest Spirits Superstore.
AI Features and Growth
Scotch embeds AI into inventory and vendor workflows to reduce manual tasks. The company states the system can save owners more than a full day of work per week. Growth has occurred through geographic sales representatives and partnerships with local trade associations, according to Crunchbase News.
