Scotch, an AI-native operating system tailored for liquor store owners, raised $20 million in a Series A funding round, the company confirmed. The Denver-based startup, formally incorporated in January 2024, offers an all-in-one software ecosystem that includes point-of-sale hardware, custom software, payment processing, and back-office tools to manage regulatory complexities across states.
VMG Partners led the Series A round, with participation from First Round Capital, Lerer Hippeau, and Toba Capital, according to news.crunchbase.com. Scotch’s co-founder and CEO Jake Bolling described the funding as a significant step up from its $10 million seed round raised in September 2024. The company reported more than 500% year-over-year growth and surpassed $1 billion in processed payment volume.
Scotch aims to disrupt the legacy liquor retail technology market by providing a unified platform for stores ranging from boutique single-register shops to enterprises with multiple lanes. The startup emerged from challenges faced by Bolling and CRO Kevin Hodges in their previous venture, Skupos, which served 15,000 convenience stores and attracted interest from major consumer packaged goods companies such as Coca-Cola and PepsiCo.
The Series A funding will support Scotch’s expansion and product development as it addresses state-by-state regulatory challenges in liquor retail. The company’s rapid growth and $1 billion in processed payments underscore its traction in a traditionally fragmented market, setting the stage for further scaling.