Cannabis tech platform Dutchie announced Tuesday its acquisitions of software companies Greenbits and LeafLogix in an effort to streamline e-commerce tools for its dispensary partners.
Greenbits and LeafLogix create enterprise resource planning and point-of-sale software for cannabis companies. Dutchie declined to disclose the financial terms.
Founded in Oregon by brothers Ross and Zach Lipson in 2017, Dutchie works with 2,116 dispensaries across 36 markets in the United States and Canada to facilitate online ordering of cannabis, including pick up and delivery.
The deals come as more states like Virginia look to legalize cannabis, and the pace of consolidation in the sector accelerates. Since November, six states have passed legalization measures.
Also Tuesday, Dutchie said it has received $200 million from investors in a Series C funding round, putting its valuation at $1.7 billion.
The latest funding round was led by Tiger Global, with new investors Dragoneer and DFJ Growth. Existing investors, Casa Verde Capital, Thrive Capital, Gron Ventures and former Starbucks CEO and founder Howard Schultz, also participated.
Dutchie CEO Ross Lipson told CNBC he remains optimistic that this move will further the company’s presence in the fast-growing industry.
Commenting on business trends, Lipson said in an interview that while the majority of customers are purchasing cannabis flower products, the company is seeing greater demand in the industry for many other forms of the plant.
“You’re seeing many more categories like vaporizers, topicals, edibles and tinctures continue to increase in demand as well. I think as the technology and education continues, the product offering will expand for sure,” Lipson said.
