Treez, a point of sale software (POS) provider, which could be described as the Oracle of the marijuana industry, announced it has raised $11.5 million in a new Series A funding round.
The new funding, which brings the total funding the company has raised to $15 million, was led by Intrinsic Capital Partners, which provided $10 million of the funding by itself. Also providing investments are AFI Capital Partners and Welcan Capital.
Treez CEO John Yang said that the capital raise allows the company to grow and expand in the burgeoning cannabis market while giving dispensaries, commercial and retail sellers their tech solutions all under one roof. “We’re thrilled that our funding has put us in a position where we can continue to expand our team, invest in beneficial partnerships, and bring more creative retail management solutions to this rapidly growing industry,” said Yang in a statement.
Yang continued: “When we created Treez, we understood the impact our technology could have within the cannabis industry—ushering in a new era of automated compliance, data-driven insights, and a more modern, integrated cannabis ecosystem.”
In addition, the firm will use the new funds to “expand its footprint, pursue market expansion opportunities and invest in partnerships that will help seamlessly connect each link in the supply chain.”
The POS market is expected to surge over the next few years, as consumers continue to move away from cash and more small businesses get accustomed to new systems and upgrade existing ones. According to Grand View Research, the mobile POS market is expected to grow 17 percent annually until 2024, due largely to “small specialty and retail businesses find tablets a powerful substitute for the traditional point-of-sale systems,” Grand View wrote in its report.
Treez, which launched just two years ago, describes itself as an “enterprise software platform solution company for retailers in the cannabis space,” according to its CrunchBase page.
Based in Fremont, Calif., it was founded by Yang, Shareef El-Sissi and Wayne Lee. It had raised $1.2 million prior to the Series A funding.
Jerry Stahlecker of Intrinsic said that the Pennsylvania-based equity firm looks at businesses that are transforming the cannabis industry and noted that Treez fits the bill.
“We’re excited to invest in a team that has delivered the industry’s leading enterprise retail management technology and look forward to supporting Treez in growing its market share and developing broader industry solutions,” Stahlecker said.