Scotch

What Scotch does

Scotch is a Denver-based, venture-backed SaaS company that builds an AI-native operating system designed exclusively for independent liquor retailers in the United States. The platform combines point-of-sale, payment processing, back-office inventory management, ordering, receiving, analytics, loyalty, and eCommerce into a single system, and requires all customers to use Scotch Card Processing. Founded in January 2024 by Jake Bolling (CEO), Kevin Hodges, and Dan Chen (CTO, ex-Drizly), the company targets the roughly 37,000-40,000 independent liquor stores in the U.S. that still operate on 30-40 year-old legacy POS software and face unique operational complexity from the regulated three-tier alcohol distribution system, including case-break inventory, distributor deal sheets, and FIFO cost tracking.

The product is differentiated by domain-specific features — OCR invoice ingestion that automatically parses distributor invoices via photo or PDF, case/six-pack/bottle tracking as a single linked product, AI-powered dynamic reorder points, real-time shrinkage detection, target-margin pricing at the point of receiving, and offline-mode POS. Scotch monetizes through bundled annual subscriptions with custom pricing tied to store size and volume, plus transaction fees on payment processing (with a rate-match guarantee) and hardware sales that transfer to the customer after a 24-month term. The go-to-market is sales-led with white-glove on-site installation, data migration, and staff training, supported by content marketing and a viral 'Demolition Day' campaign. As of June 2026 the company has raised $30M ($10M seed from First Round Capital in Oct 2025; $20M Series A led by VMG Partners in Jun 2026), reports greater than 500% year-over-year growth, and has surpassed $1 billion in annualized gross payment volume within 10 months of first-store launch.

Name

Scotch

Legal name

Scotch Inc.

Website

https://scotchpos.com

Company type

Private

Founded year

2024

Operating status

Operating

Headcount range

11–50 employees

Short description

Scotch is a Denver-based SaaS company that provides an AI-native operating system — combining POS, payments, inventory, and eCommerce — built exclusively for U.S. independent liquor stores, sold via white-glove field sales with bundled card processing.

Ownership category

akta.pro rank

Product category

Liquor Retail POS Software

NAICS

Beer, Wine, and Liquor Retailers (445320), Beer, Wine, and Liquor Retailers (4453), Beer, Wine, and Liquor Retailers (44532)

SIC

Wholesale-Beer, Wine & Distilled Alcoholic Beverages (5180)

akta.pro primary industry

Spirits Retail & Whiskey Shops (Off-Premise) (CRANAAAD)

akta.pro secondary industry

Mixed Alcohol Specialty Retail (Beer/Wine/Spirits Combined) (CRANABAH)

Keywords

• Liquor store POS
• Retail inventory management
• Point of sale software
• Payment processing platform
• Alcohol retail operations

Headquarters

HQ city

Denver

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Operations, Marketing or Sales

Revenue model

1. Software Subscription (SaaS): Subscription-based software for POS, back office, and inventory management. All plans require use of Scotch Card Processing. Custom pricing based on store size and needs. Includes on-site installation, training, inventory transfer, ongoing support, security monitoring, and software upgrades at no extra cost.
2. Card Processing Fees: Payment processing fees charged on transactions. The company guarantees to beat or match current rates and provides transparent fee reporting. All subscription plans require use of Scotch Card Processing.
3. Hardware Sales: POS hardware including terminal, card reader, card reader stand, scanner, cash drawer, receipt printer, and label printer. Hardware title remains with Scotch until commitment term completion (24 months), then transfers to customer.

Pricing tiers

Go-to-market motion2 records

Distribution channels2 records

Marketing channels6 records

Core offering

Scotch is an AI-native, all-in-one operating system designed exclusively for independent liquor retailers. It bundles point-of-sale checkout, integrated card processing, back-office inventory management with OCR-based invoice ingestion, ordering, analytics, multi-location visibility, loyalty programs, and an integrated eCommerce module. The platform handles alcohol-retail-specific workflows such as case-break tracking, FIFO cost accounting, distributor invoice parsing, and compliance within the three-tier distribution system.

Product overview

Scotch is an all-in-one operating system designed exclusively for liquor retailers, consisting of three integrated modules: POS & Payments (point-of-sale checkout and payment processing), Back Office (inventory management, ordering, receiving, and analytics), and eCommerce (online sales capability). The system is specifically built to handle the operational and compliance complexities of alcohol retail, including the three-tier distribution system, case-break inventory, distributor invoice processing, and FIFO cost tracking. The platform uses AI-powered features including OCR invoice ingestion, automated reorder points, and real-time margin analytics to help liquor stores reduce manual work and improve profitability.

Differentiator

Problem solved

Functional benefit

Products and services

• Scotch POS & Payments

Quantifiable outcome

• 15-20 hours saved per week on invoice entry alone
• +4 more outcomes

Named customers9 records

Segments2 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability6 records

Feature10 records

Scale indicators12 records

Recent moves6 records

Expansion highlights3 records

Broad incumbents

• Toast: Restaurant-focused POS giant that some liquor stores use for adjacent retail. Has the engineering resources to expand into liquor-specific retail features, posing a potential long-term competitive threat to Scotch's vertical specialization.
• Clover (Fiserv): POS platform from Fiserv widely deployed at SMB retailers including independent liquor stores. Competes indirectly via broad-market hardware-software bundles and integrated payment processing similar to Scotch's bundled card-processing model.
• NCR Counterpoint: Long-standing retail POS incumbent used across specialty retail verticals including beverage alcohol. Competes with Scotch for multi-location and larger liquor retailers, though without the AI-native, liquor-exclusive positioning.
• Square for Retail: General-purpose POS from Block used by many small retailers including liquor stores. Lacks deep liquor-specific features (case-break, three-tier, FIFO) but has brand recognition and ecosystem advantages that compete for the same shelf.
• Lightspeed Retail: Established omnichannel retail POS platform serving specialty retail including wine and liquor. Competes for the same independent liquor store customers but as part of a much broader retail portfolio rather than alcohol-specialized workflows.

Direct peers

• BottlePOS: Direct competitor offering POS software purpose-built for liquor stores. Overlaps directly with Scotch's core product, target customer (independent liquor retailers), and value proposition around case-break inventory and distributor workflows.

Others

• Drizly (Uber): Alcohol e-commerce and delivery platform (acquired by Uber for >$1B), where Scotch's CTO Dan Chen previously served as CTO. Operates in the alcohol retail value chain on the consumer side, making it a strategic ecosystem connection rather than a direct POS competitor.
• MarketMan: Cloud inventory and supplier management platform primarily for restaurants. Shares back-office inventory automation DNA with Scotch's Back Office module and represents an adjacent category Scotch's founders could target after establishing the liquor wedge.
• BlueCart (Commerce7/B2B GPO ecosystem): B2B ordering platform connecting retailers with alcohol/beverage wholesalers. Operates upstream of Scotch in the three-tier system and is a potential integration partner or indirect competitor for ordering-side workflows.

Emerging players

• Skupos: Convenience-retail data and inventory platform previously built by Scotch's founders (Jake Bolling, Kevin Hodges). Closely adjacent vertical with overlapping workflow DNA (case/inventory, distributor invoice ingestion), making it a logical near-term expansion target or comparison benchmark.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/ScotchPos
• LinkedInlinkedin.com/company/scotch-inc

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds3 records

Investors6 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Scotch