Ross Lipson, left, and Zach Lipson, co-founders of Dutchie.
Source: Dutchie
The Cannabis Dutchie technology platform announced on Tuesday its acquisition 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 software and a point of sale 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 in 36 markets in the United States and Canada to facilitate online cannabis ordering, including picking and delivery.
The agreements come as more states like Virginia seek to legalize cannabis, and the pace of consolidation in the sector is accelerating. Since November, six states have adopted legalization measures.
Also Tuesday, Dutchie said it received $ 200 million from investors in a round of C-series financing, valued at $ 1.7 billion.
The latest 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 Starbucks CEO and founder Howard Schultz also participated.
Dutchie CEO Ross Lipson told CNBC that he remains optimistic that the move will increase the company’s presence in the fast-growing industry.
Commenting on business trends, Lipson said in an interview that while most customers buy cannabis flower products, the company sees greater demand in the industry for many other forms of the plant.
“You see many other categories like vaporizers, topical products, food and tinctures continue to grow and in demand. I think as technology and education continue, the product offering will certainly expand,” Lipson said.
The company is scheduled to appear on CNBC’s Closing Bell on Tuesday afternoon.