Ross Lipson, left, and Zach Lipson, co-founders of Dutchie.
Source: Dutchie
Cannabis Dutchie’s technology platform on Tuesday announced its acquisitions of software companies Greenbits and LeafLogix in an effort to optimize e-commerce tools for its dispensary partners.
Greenbits and LeafLogix create enterprise resource planning and point-of-sale software for marijuana 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 in 36 markets in the United States and Canada to facilitate online cannabis orders, including collection and delivery.
The deals come at a time when more states like Virginia are looking to legalize cannabis and the pace of consolidation in the sector is accelerating. Since November, six states have passed legalization measures.
Also on Tuesday, Dutchie said he received $ 200 million from investors in a Series C financing round, putting his valuation at $ 1.7 billion.
The last round of financing was led by Tiger Global, with new investors Dragoneer and DFJ Growth. Existing investors, Casa Verde Capital, Thrive Capital, Gron Ventures and former CEO and founder of Starbucks Howard Schultz, also participated.
Dutchie’s CEO Ross Lipson told CNBC that he remains optimistic that this change will increase 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 buying cannabis flower products, the company is seeing increased demand in the industry for many other forms of the plant.
“You are seeing a lot more categories, like vaporizers, threads, edibles and dyes, which continue to increase demand as well. I think that as technology and education continue, the product offering is sure to expand,” said Lipson.
The company is scheduled to appear on CNBC’s Closing Bell on Tuesday afternoon.