Kaddy secures $3.5m in funding
Business-to-business beverages marketplace, Kaddy, will continue its growth plans after completing a $3.5m funding round.
Kaddy connects alcohol suppliers with trade customers with a discovery, ordering, invoicing and payment platform, which will be enhanced as a result of the new funds. The money will also help the Sydney-based start up to expand its team with 10 new hires expected this year, to help drive the business beyond NSW and ACT, into Victoria and Queensland.
KTM Ventures, SpringCapital and restaurant entrepreneur, John Szangolies have backed Kaddy in the oversubscribed raise, with many of Kaddy’s existing investor base following on from their initial investments made in 2019. KTM and Szangolies were initial investors in the Company, alongside other experienced industry names such as Stevan Premutico, founder of Dimmi and me&u.
Mike Abbott, co-founder of Kaddy, said: “This is an exciting time for Kaddy as we look to accelerate our growth and deliver on our mission of improving and modernising the wholesale beverages marketplace for suppliers and their customers. We are thrilled to have these investors throw their weight behind us amid some of the most challenging fundraising conditions in recent history.
“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. 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.”
Abbott founded Kaddy with high school and university mate Rich Coombes, previously co-founder of Batlow Cider, Capital Brewing and Will & Co Coffee.
Coombes said: “Day to day, Mike and I were both seeing first hand just how messy, clunky and time consuming it was for the beverages industry to trade – on both the customer 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.”
Launched in October 2019 Kaddy connects pubs, restaurants, bars and bottle shops with craft breweries, wineries, and spirit producers.
“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,” says Coombes.
“Meanwhile, suppliers gain access to new customers and they never have to send an invoice or chase payments again – Kaddy does it all. We’ve made the whole process streamlined for both sides with no more messy texts, emails or phone calls,” added Abbott.