Trade has raised $9 million in a Madrona Venture Group-led financing round, with the ongoing support of Launch and JAB. The coffee subscription company aims to “inspire better brewing” by linking coffee-drinking consumers with roasters, according to a Wednesday (Sept. 2) announcement.
“Through our curated selection, personalization technology and modern supply chain, Trade is opening specialty to a broader audience, and will propel the category to capture a larger share of the $55B U.S. coffee market," Trade CEO Mike Lackman said in the announcement. "Madrona's marketplace and eCommerce expertise make them the perfect partner as we continue toward this vision.”
Since its 2018 rollout, Trade said it has created a base of loyal customers with a 90 percent retention rate after the first order. The company indicated that it will continue to tell its brand story to reach a broader array of people, provide “great coffee experiences” and create ways to support roasters.
“We love marketplace businesses with strong value propositions to customers and suppliers, and are excited to partner with Trade to scale its marketplace for specialty coffee,” Madrona Venture Group Managing Director Scott Jacobson said in the announcement.
Trade said it has sent over one million coffee bags in only two years, and anticipates mailing another million in the six months to come. The company’s staffers have curated more than 400 varieties from more than 55 local roasters. Trade's technology, which is fueled by data, enables it to pair users to coffee based on their preferences.
As PYMNTS previously reported, Trade has discovered that its subscribers, who span in age from 25 to 40, desire variety more than anything. The firm aims to customize its experiences by allowing subscribers to describe how they want their brews to taste.