Ross Lipson, left, and Zach Lipson, Dutchie co-founders.
Source: Dutchie
Cannabis tech platform Dutchie on Tuesday announced the acquisitions of software companies Greenbits and LeafLogix in an effort to streamline e-commerce tools for its pharmacy 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 in 2017 by brothers Ross and Zach Lipson, Dutchie has partnered with 2,116 dispensaries across 36 markets in the United States and Canada to facilitate online cannabis ordering, including collection and delivery.
The deals come as more states like Virginia seek to legalize cannabis, and the pace of consolidation in the industry accelerates. Since November, six states have taken legalization measures.
Also Tuesday, Dutchie said it has received $ 200 million from investors in a Series C funding round, bringing the valuation to $ 1.7 billion.
The latest round of funding 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 that he remains optimistic that this move will strengthen the company’s presence in the fast-growing industry.
Commenting on business trends, Lipson said in an interview that although the majority of customers purchase cannabis flower products, the company is seeing greater demand in the industry for many other forms of the plant.
“You see that in many more categories, such as vaporizers, topicals, edibles, and tinctures, there is also increasing demand. I think as technology and education progresses, the product offering will certainly increase,” said Lipson.
The company is scheduled to hit CNBC’s closing clock Tuesday afternoon.