City Hive Tops $1B in B2B Alcohol Payments
Fintech platform City Hive has surpassed $1 billion in annual B2B payments processed for the wholesale alcohol industry. This milestone marks a turning point for embedded payments in highly regulated, niche sectors seeking integrated commerce and ERP solutions.
New York-based City Hive, founded in 2014, initially focused on providing white-label e-commerce solutions for independent liquor retailers, a strategy that saw the company's online sales grow 1,100% during the pandemic. This foundation with retailers provided the network for their strategic expansion into the B2B market, aiming to digitally connect all three tiers of the highly regulated alcohol industry. The company officially launched its B2B platform in June 2022, extending its services to distributors and suppliers. This solution provides distributors with branded storefronts, CRM tools, and ERP integrations to manage their wholesale operations. For suppliers, the platform offers tools for brand control, targeted advertising to retailers, and real-time sales data across City Hive's network. City Hive's CEO, Roi Kliper, has a background in computational neuroscience and has worked in machine learning at Microsoft. He co-founded the company to bring data-driven tech solutions to an industry he perceived as being left behind by innovation. The platform's growth has been fueled by its value proposition of giving retailers and distributors ownership of their customer relationships, a direct contrast to third-party marketplace models. The company has raised a total of $3.27 million in funding from investors including Lorimer Ventures and Blue Equity. While City Hive's B2B payment volume has now crossed the $1 billion mark, it operates in a competitive landscape with established players like Fintech, which processes over $50 billion in annual alcohol purchases.
