Capital may be tight for most cannabis companies, but investors are still willing to make some selective bets. The cannabis retail platform, Greenbits raised $23 Million in a Series B funding round led by Tiger Global and Casa Verde. Greenbits serves more than 1,200 retail locations, including both medical dispensaries and adult-use retailers, across 13 states. In February, Greenbits began operating in the state of Illinois, which opened its adult-use market in January and is expected to become the second-largest cannabis market in the United States.
As the COVID-19 pandemic has wreaked havoc on retail, Greenbits has managed to stay above the chaos. “Same-store sales are up 35% year over year in March. We saw legal cannabis sales spike in the onset of the coronavirus pandemic this March, and they have remained robust in the weeks since,” said CEO Barry Saik. “We have continued to support our retail and dispensary customers as they adapt to offer call-ahead ordering and ordering and curbside deliveries, ensuring safe practices for their communities. With this investment, we’ll able to continue helping our customers grow their businesses with ease,” said Greenbits CEO Barry Saik.
The investment comes from New York-based Tiger Global Management, an investment firm focused on growth-oriented internet, software, consumer, and payments. Tiger co-led the round with Los Angeles-based Casa Verde, a cannabis investment fund. The round also included existing investors as well as several prominent industry executives with experience in software and payments.
“Over the last six months, we laid plans to position the company for a new phase of accelerated growth. We could not be more pleased that Tiger Global and Casa Verde share our vision and excitement in the future of the company and the sector at large,” said Greenbits CEO Barry Saik, who joined the company in late 2019 after a long run at Intuit and then at GoDaddy.
Today, Greenbits serves more than 1,200 retail locations, including medical dispensaries and adult-use retailers, across 13 states. Greenbits will use the new capital to accelerate sales, marketing, and product development while expanding product and service offerings to new geographic markets. Greenbits processes $3.7 billion in regulated cannabis sales annually on its point-of-sale platform.
“We are excited to partner with Greenbits again in its next phase of growth,” said Karan Wadhera, Managing Partner of Casa Verde. “Greenbits has emerged as the leading player in the industry because of its sharp focus on retail, its ability to serve customers ranging from single-store locations to the largest multi-state operators, and its development into a comprehensive retail platform that can rapidly scale.”
Saik joined Greenbits after founding and running the SmartLine business at GoDaddy (NYSE: GDDY), the global company that helps entrepreneurs and businesses to be successful online. In addition, Greenbits announced that Sarvesh Mathur has joined the company as its new Chief Technology Officer. Before Greenbits, Mathur served as CTO at Scout RFP (acquired by Workday), the procurement and sourcing software solution for businesses that has been praised for its simplicity, design, and impact on customers’ bottom lines.