Top Takeaways:
- $40M+ raised in fresh capital to accelerate Sesh+’s U.S. expansion.
- Retail push powered by high-profile backers and a proprietary, pH-balanced pouch formula.
- Regulatory progress: FDA has accepted Sesh’s PMTA for 72 SKUs and is currently reviewing them.
Tobacco-free pouch maker Sesh has raised more than $40 million to fuel its U.S. expansion, the company said Thursday.
The round was led by venture capital firm 8VC and Jack Link’s CEO Troy Link, with participation from Electric Feel Ventures and entertainment investors including Post Malone, Diplo and Zac Brown.
Founded in 2020, Austin-based Sesh has quickly secured national distribution with retailers such as Buc-ee’s, Sheetz, QuikTrip and Circle K. Its white pouch products are manufactured in Ohio and use a patented, pH-balanced formulation created by Thomas Ericsson, inventor of Zyn.
The company states that MCT oil in the blend enhances mouthfeel and reduces dryness — a common complaint among pouch users.
“We’re really trying to raise the standard in nicotine,” CEO Max Cunningham said. “It’s important for emerging brands like Sesh to exist in the category, and for it not to be just dominated by Big Tobacco.”
Cunningham told Fortune the company employs 30 staff, sells in more than 5,000 U.S. and Canadian outlets, and is on track for 5,000% year-over-year growth.
Sesh has also moved early on regulatory compliance. Its premarket tobacco product applications (PMTAs) covering 72 stock-keeping units (SKUs) were accepted by the U.S. Food and Drug Administration in October 2023 and remain under review.
The fresh capital will support distribution, marketing and new product development as Sesh competes with pouch brands owned by Philip Morris International, British American Tobacco and Altria. Analysts expect the global pouch market to grow from $4 billion in 2023 to nearly $50 billion by 2033.
