Kaddy, a tech enabled B2B beverages marketplace that streamlines the discovery, ordering, invoicing and payment process for alcohol suppliers and their trade customers, has announced the completion of an AUD $3.5 million dollar funding round.
KTM Ventures, SpringCapital and iconic 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.
What will Kaddy use this funding for?
The new funds will help the Sydney based start-up enhance its platform capabilities, grow the team with ten new hires expected this year, and expand interstate to Victoria and Queensland (currently in NSW and ACT only). International expansion is also on the horizon for late 2020.
“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,” says Mike Abbott, co-founder of Kaddy.
“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,” added Abbott.
What is the story behind Kaddy?
Co-founded by high school and university mates Rich Coombes (previously co-founder of Batlow Cider, Capital Brewing and Will & Co Coffee) and Mike Abbott (previously co-founder of Uber in Australia), the idea for Kaddy was born in between surfs and beers where the pair would discuss a shared frustration with the antiquated ordering and payment methods in the beverages industry.
“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,” says Rich Coombes, co-founder of Kaddy.
In October 2019, after six months of development, Kaddy launched to revolutionise the traditional wholesale drinks sector. Kaddy connects pubs, restaurants, bars and bottle shops with craft breweries, wineries, and spirit producers on one simple platform allowing users to discover, order, invoice and pay – with no dreaded credit apps required.
“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.
Uptake of Kaddy has been strong since launch with over 100 suppliers and 190 venues already signed up including some of the leading hospitality and beverage brands in the country such as Young Henrys, Archie Rose, AppleJack Hospitality and Mr Liquor.