Ross Lipson, left, and Zach Lipson, co-founders of Dutchie.
Source: Dutchie
Dutch cannabis technology platform on Tuesday announced 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 refused to disclose financial terms.
Founded in Oregon by brothers Ross and Zach Lipson in 2017, Dutchie works with 2,116 dispensaries in 36 U.S. and Canadian markets to facilitate online ordering of cannabis, including collection and delivery.
The deals come as more states like Virginia want to legalize cannabis and the pace of consolidation in the industry is accelerating. Since November, six states have passed legalization measures.
Also Tuesday, Dutchie said it has received $ 200 million from investors in a round of C-Series funding, which placed its valuation at $ 1.7 billion.
The final round of financing was led by Tiger Global, with new investors Dragoneer and DFJ Growth. Also in attendance were existing investors, Casa Verde Capital, Thrive Capital, Gron Ventures and former Starbucks CEO and founder Howard Schultz.
Dutchie CEO Ross Lipson told CNBC that he remains optimistic that this move will foster the company’s presence in the fast-growing industry.
Commenting on business trends, Lipson said in an interview that while most customers buy floral cannabis products, the company sees greater demand in the industry for many other forms of plant.
“You see many more categories, such as vaporizers, clichés, groceries and dyes, that are also continuing to increase in demand. I think as technology and education continue, the supply of products will surely expand,” he dir Lipson.
The company is scheduled to appear on CNBC’s Closing Bell on Tuesday afternoon.