Privately-owned cannabis tech firm Dutchie has raised $350m in Series D financing which is now placing a $3.75 billion valuation on the Oregon-based company. The company said it plans to use the money to keep expanding operations and invest in R&D investments to launch major products to support cannabis dispensaries. That includes hiring more top talent for the firm.
Dutchie is a behind-the-scenes company that charges dispensaries a monthly fee to create and run their websites and manage orders. With the pandemic, many dispensaries were pushed to create online ordering for pickup in-store. Plus, many customers don’t like waiting in lines and the convenience of online ordering and express pickup desks in dispensaries has added to the product’s popularity. The company said in a statement,
We have had a pivotal 2021 and will continue to expand our product suite and innovate solutions for cannabis retailers. As we strive to create safe and easy access to cannabis, we hope to open more hearts and minds to the good it can do.
Founded in 2017, Dutchie now has over 500 employees across 40 different U.S. states and in Canada. In the last fundraising round CEO Ross Lipson said,
“Dutchie’s mission is to provide safe and easy access to cannabis while helping power the positive societal change that cannabis is bringing to the world. We believe we have a responsibility to help contribute to the next evolution of the industry, help all sides of the market grow, and create opportunities and outcomes that benefit all of our partners and consumers.”
Dutchie’s Series D comes seven months after its last funding round — a $200 million Series C — one of the largest private funding rounds in the cannabis industry. The round was led by D1 Capital Partners, with participation from previous investors including Tiger Global, Dragoneer, DFJ Growth, Thrive Capital, Gron Ventures, and Casa Verde Capital, and new investors, including Willoughby Capital, Glynn Capital, and Park West Asset Management.
One of the fastest-growing cannabis tech platforms Dutchie said it completed its $200 million Series C, at a $1.7 billion valuation. The company’s latest funding round is led by Tiger Global, with participation from new investors Dragoneer and DFJ Growth, and from existing investors including Casa Verde Capital, Thrive Capital, Gron Ventures, and former Starbucks Chairman and CEO Howard Schultz. Dutchie also said it is buying Greenbits and LeafLogix, two enterprise resource planning (ERP) and point-of-sale (POS) software solutions serving the cannabis industry, to provide more value to dispensaries and consumers.
“Since dutchie was founded in July 2017, we’ve always been hyper-focused on our retailers. We’ve taken pride in being there when they need us and building a product that’s designed to solve the unique challenges they face in this industry. As technology in the space has evolved, the relationship between point of sale and e-commerce has taken center stage, and continuously investing in these partnerships has long been a top priority for dutchie,” read the company statement.
The company also announced that Tim Barash, former CFO and Chief Business Officer at Toast, will serve as the company’s new Executive Chairman. Barash said, “Dutchie is powering a new generation of entrepreneurs driving one of the most disruptive consumer trends of the last century. This is a once-in-a-lifetime opportunity to join a team focused on accelerating an industry that has a wide range of positive societal impacts, from better health and wellness outcomes to reversing a stigma that hampers criminal justice reform to supporting communities by enhancing state and local tax revenues.”
Dutchie went on to say, “LeafLogix and Greenbits have always been great partners. As we grew closer we found that these companies, in particular, shared our passion for customer success and our beliefs around the benefits cannabis can have on society. Over time it became clear that officially bringing our teams and technology together would create unparalleled opportunities to build solutions for our retailers. Thus, the decision was made for dutchie to acquire both companies. With point of sale and e-commerce systems playing a central role in the tech stack, we believe it’s important to enable retailers to choose the technology that best suits their operation. As such, we look forward to continuing our contributions to a healthy partner ecosystem in cannabis. For dutchie, LeafLogix, and Greenbits, investing in our API’s and integrations will remain a top priority, staying true to our commitment to provide a platform that puts retailers first.”
John Curtius, Partner at Tiger Global said, “We work with companies that have the potential to reshape major parts of the global economy. Our investment will help dutchie extend its platform and deepen relationships with merchants, consumers, and brands to drive better outcomes for all in this ecosystem. We look forward to supporting this world-class team as they hit a new phase of growth.”
Dutchie said the Series C funds will go toward continuing to add and attract top talent, assist with expansion into new markets, and launch major product developments to support cannabis dispensaries while meeting evolving consumer demand and expectations.
Cannabis e-commerce company Dutchie, has launched “Dutchie Plus,” a fully customizable online shopping experience. Dutchie Plus will allow dispensaries to create seamless online shopping experiences through open APIs and powerful back-end tools, including access to deep analytical data to drive sales and a messaging platform to connect directly with customers. Dutchie’s latest solution extends its innovative product suite to meet the needs of large dispensaries and multi-state operators (MSOs).
“The cannabis industry is one of the fastest-growing in the world, yet even the largest businesses are still fighting with one hand behind their back with outdated technology tools,” said Zach Lipson, CPO, and Co-founder at Dutchie. “For the first time ever, dispensaries will now have full control over their online presence down to every line of code and design choice without limitations to give consumers a completely unique, seamless experience. By giving businesses this unprecedented level of customization, Dutchie Plus brings our vision to redefine the modern cannabis consumer experience to life.”
According to IBM’s U.S. Retail Index, the COVID-19 pandemic has accelerated the shift away from physical stores to digital shopping by roughly five years. The cannabis industry is one of the fastest-growing in the world with the global cannabis market expected to reach $73.6 billion by 2027. Yet even the largest dispensaries and MSOs are currently unable to create fully customized online shopping experiences with the current tools on the market. Dutchie’s latest enterprise-level offering is a breakthrough for the industry, giving dispensaries the tools and expertise afforded to other mainstream industries to ensure their brand is represented on their terms, effectively navigate changes in the market, increase their bottom line, and retain more customers.
“Cookies has a discerning fan base that collectively demands and deserves world-class experiences, paired, of course, with the dankest bud on Earth. Dutchie Plus enables us to bring our polish and magic to digital, where innovation is sorely needed in the cannabis space,” said Sam Gammon, Director of Technology at Cookies, a preeminent international cannabis lifestyle brand. “We’re beyond excited to realize a truly seamless digital expression of cannabis commerce, and these new tools will allow us to channel our creativity without limitation. Technology and cannabis can be powerful equalizing forces, and Dutchie Plus is a big step toward something truly fresh and new that works great for operators while meeting customers where they are: the free and open internet.”
It’s one of the least known cannabis companies for people outside the industry, but e-commerce company Dutchieis quickly making a name for itself. The company just completed a $35 million Series B funding round, bringing its total funding to $53 million to date.
Since it is still private company, it has managed to fly below the radar but insiders were already jumping on board. Dutchie’s investors include: Snoop Dogg’s Casa Verde Capital, Kevin Durant’s Thirty Five Ventures, Thrive Capital, Gron Ventures, and Howard Schultz, Founder and Chairman Emeritus of Starbucks Coffee Company. “In one of the fastest-growing industries in the world, Dutchie is defining how the modern cannabis consumer experience should look and feel for dispensaries and customers alike,” said Ross Lipson, CEO and Co-founder at Dutchie. “We have spent three years building the largest online ordering service in cannabis and now is the time to take Dutchie to the next level. We will accelerate in every aspect, from building a world class team, to delivering the industry’s best product, and continuing to push the boundaries with innovative and exciting ways to connect consumers and dispensaries.”
The company was launched in 2017 in Bend OR with three dispensaries. By 2018, it was in 50 stores and closed a $3 million seed round from Casa Verde Capital and high profile angel investors. In 2019, the company had grown to 245 stores in nine markets and raised another $15 million. It is now in 1300 stores and 32 active markets. Lipson added, “We’re excited about the opportunities our new funding round gives us to continue recruiting top talent and developing innovative technology and products to meet the evolving needs of dispensaries and customers while helping the legal market mature and grow.”
Grabbing Market Share
To get an idea of how big Dutchie is getting consider that this company processes 10% of all legal cannabis sales worldwide, and powers 25% of all legal dispensaries across 30 markets and 301 cities in the United States and Canada. Dutchie said in a statement that it processes approximately 75,000 orders a day—a marker that continues to increase—and is facilitating over $2.4 billion in annualized sales. The e-commerce solution equips dispensaries of any size with the necessary tools to meet surging market demand for online ordering, curbside pick-up, digital payments, and deliveries.
“Since leading their first round of financing in 2018, the Dutchie team has continued to impress us with their maniacal focus on execution,” said Karan Wadhera, the Managing Partner of Casa Verde Capital. “Under Ross’ leadership, the business has achieved unprecedented growth across every critical metric.”
While the pandemic has proven to be a challenge for many companies, Dutchie was actually in a position to capitalize on market disruption. Since the company provides cannabis retailers and consumers a socially distant and compliant way to shop and order online, it was able to quickly solve many owners problems. The company offers tailored software that streamlines operations by automatically updating a retailer’s online menu, and can give customer support with an average response time of less than one minute.
This latest investment reflects the company’s exponential trajectory in just three years and firmly establishes Dutchie as the clear market leader. The company is also hiring for several remote jobs that can be found on its website.
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