New Investment: Provi
We’re very excited to announce Interplay Ventures’ second investment from our newly formed Fund II: Provi. We invested in the company’s Series A alongside Bessemer Venture Partners and Nosara Capital.
The passage of the 21st amendment at the end of Prohibition created a complex alcohol distribution system that exists to this day. Under this federally mandated three-tier system suppliers cannot sell alcohol directly to retailers or consumers. The distribution of alcohol is instead split into three tiers — suppliers, distributors, and retailers — with no one company being able to be involved in more than one-tier.
This three-tier distribution system is the backbone of a massive industry. There are 50,000 suppliers, including breweries, distilleries, importers and wineries, selling 2 million SKUs to over 3,500 distributors. These distributors sell $166B worth of merchandise to the over 600,000 retailers which include bars, restaurants and traditional liquor retailers.
Provi has built an online marketplace for alcohol suppliers, distributors and retailers to solve the inherent operational issues of the three-tier system. The company’s marketplace streamlines retailers’ entire ordering process by sending orders with the click of a button, enabling retailers’ access to the full product catalog and digitizing the entire ordering process. In addition to digitizing retailer purchases, Provi’s SaaS-enabled marketplace provides order management for distributors and direct marketing and data for suppliers. The company is currently processing over $300 million in orders annually and scaling rapidly.
We are excited to join CEO Taylor Katzman and the rest of the Provi team as they continue to dominate this industry.