B2B beverages marketplace Kaddy has raised $3.5 million in funding, with the new funds aimed at helping the start-up enhance its platform capabilities, grow the team and expand interstate.
Kaddy launched in October 2019, and is a platform to connect pubs, restaurants, bars and bottles shops with craft breweries, wineries and spirit producers, transforming the traditional wholesale drinks sector by streamlining discovery, ordering, invoicing and the payment process.
KTM Ventures, SpringCapital and restaurant entrepreneur John Szangolies have backed Kaddy in the raise, while the uptake of Kaddy since its launch has already seen 100 suppliers and 190 venues signing up, including Yong Henrys, Archie Rose and AppleJack Hospitality.
Kaddy co-founder Mike Abbott said the team was thrilled to have investors throw their weight behind the platform during the current challenging fundraising conditions.
“The Kaddy model and marketplace has become even more relevant in the COVID-19 world as venue operators, retailers and suppliers seek more efficient back end processes,” said Abbott.
“Our investors are excited about the opportunity Kaddy has to help the hospitality and beverages industry streamline their operations during these testing times and beyond.”
Kaddy was founded by high school and university friends Rich Coombes, who co-founded Batlow Cide and Capital Brewing, and Mike Abbott, who was previously the co-founder of Uber in Australia.
Coombes said both co-founders experienced the “messy, clunky and time consuming” trade of the beverages industry on both the consumer and supplier side.
“More and more beverage suppliers were popping up in the market but there was no centralised marketplace for them to connect with venues and retailers. We knew tech could play an important role to bring both sides together and help them trade with less friction,” said Coombes.
“We launched Kaddy to shake up the status quo and provide a more supportive wholesale model to an increasingly fragmented marketplace.
“Venues can now connect and order from over 100 different suppliers on the one platform with ease. Our platform accommodates core range products, but also seasonal and pre-orders of limited release products, which suppliers and customers love.”