Ross Lipson, left, and Zach Lipson, co-founders of Dutchie.
Source: Dutchie
Dutchie’s cannabis tech platform announced Tuesday that it is acquiring software companies Greenbits and LeafLogix in an effort to streamline e-commerce tools for its dispensary partners.
Greenbits and LeafLogix create enterprise resource design and point-of-sale software for cannabis companies. Dutchie refused 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 enable online cannabis ordering, including construction and delivery.
The deals come as more states like Virginia look to legalize cannabis, and the pace of ratification in the region will accelerate. Since November, six states have passed legal measures.
Also Tuesday, Dutchie said it has received $ 200 million from investors in the Series C funding round, raising its valuation at $ 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 he remains optimistic that this move will boost the company’s presence in the fast-growing industry.
Speaking of industry trends, Lipson said in an interview that while most consumers buy cannabis flour products, the company is seeing more demand in the industry for many other varieties of the plant.
“You’re seeing a lot more sectors like vaporizers, topicals, edibles and tinctures growing in demand as well. I think as technology and education continue, the product will expand to sure, “Lipson said.
The company plans to appear on CNBC’s Closing Bell on Tuesday afternoon.