The cannabis e-commerce platform LeafLink has achieved an auspicious milestone. Earlier this month, the company announced that it had reached $1 billion in annualized orders through its platform.
LeafLink is a software-as-a-service B2B marketplace that aims to simplify the cannabis supply chain. Using the platform, cannabis brands and retailers can manage wholesale inventory, review orders, shop vendors, and more. First launched in 2016, LeafLink connects over 3,000 cannabis retailers to more than 1,000 cannabis brands spanning across 20 territories in both the United States and Canada.
The company now accounts for approximately 16% of all B2B wholesale cannabis orders in the United States, which is remarkable when compared to the broader consumer market. Currently, B2C e-commerce accounts for only 9.6% of all retail sales in the U.S., and it has taken more than a decade for it to reach those heights. LeafLink, on the other hand, has only been in operation for the last three years.
According to the company, its most popular products are typically vaporizer cartridges, although its overall top-selling product is sour gummy edibles made by Wana Brands, followed by pre-rolls produced by Pacific Stone.
Hoping to deepen its market penetration, the company is working with Canopy Rivers (TSXV: RIV) to bring its e-commerce platforms to international retailers. Dubbed LeafLink Services International (LeafLink International), the company will offer non-US marketplaces a royalty-free license for their proprietary B2B software platforms and service solutions. Under their agreement, LeafLink has made an initial $1 million investment, while Canopy Rivers has committed an initial equity investment of $2 million, with an option to incrementally increase that investment to $6 million.
“We are excited to join forces with Canopy Rivers – combining our industry-leading, B2B marketplace technology with their expertise and strategic network in the global cannabis market,” said Ryan G. Smith, CEO, and Co-founder of LeafLink, in a statement. “Together, we are creating the first seamless e-commerce experience across the global cannabis supply chain to further empower members of the LeafLink community.”