Cannabis tech company Fyllo announced it has closed an oversubscribed Series B round totaling $30M co-led by JW Asset Management and Sol Global. The company has raised nearly $60 million since 2019. 60% of the funds raised in the Series B came from outside of the cannabis industry, including companies like K2, Entourage Effect Capital, George Steinbrenner IV, Arcadian Capital Management, Salveo Capital, and 2 NRP Managers, LLC an investment group led by Ben Lurie.
In addition to the capital raise, Fyllo said that Peter S Kraus, chairman and, CEO of Aperture Investors and former AllianceBernstein CEO is joining its Board of Directors. The company said that Kraus brings nearly a half-century of financial and business acumen to the Fyllo Board. He currently serves as the chairman and CEO of Aperture Investors, an asset management firm which he founded in 2018.
Fyllo’s Compliance Cloud suite of SaaS software is used by multi-state operators that include Columbia Care and Grassroots Cannabis. Fyllo has rapidly expanded its suite of services via acquisitions such as CannaRegs in 2020, which provides a regulatory compliance tool, and DataOwl earlier this year, which provides retail marketing, loyalty, and point-of-sale solutions. Funds from raise will be used to double the company’s engineering team, scale operations and sales, and accelerate the delivery of compliance automation solutions to publishers, advertisers and operators. In addition, the team will be working to bolster its cloud-based enterprise solution, integrating the point-of-sale, CRM, and retail marketing technologies acquired from DataOwl into the platform.
“The cannabis industry has benefited from rapid growth and innovation yet has lacked the enterprise software solutions to enable it to scale akin to other regulated industries. When we founded Fyllo in 2019, we saw the void in the cannabis market for technology services and the opportunity to create a definitional and disruptive solution,” said Chad Bronstein, co-founder, and CEO, Fyllo. “This vision has played out in the last 20 months as Fyllo now works with nearly every major multi-state operator in the U.S., removing barriers for these companies to scale with the speed of their mainstream peers.”
Kraus said, “Fyllo’s has developed revolutionary enterprise solutions for sectors which have long struggled with achieving compliance at scale. As a board member, I look forward to working with Chad and Fyllo’s management team to help the company expand its market share within its core expertise of managing data and compliance activities in consumer-oriented highly regulated industries.”