Cannabis tech policy Dutchie announced Tuesday its acquisitions of software companies Greenbits and LeafLogix in an effort to streamline e-commerce tools for its dispensary cohorts.
Greenbits and LeafLogix create enterprise resource planning and point-of-sale software for cannabis companies. Dutchie declined to show the financial terms.
Founded in Oregon by brothers Ross and Zach Lipson in 2017, Dutchie works with 2,116 dispensaries across 36 markets in the Opinion States and Canada to facilitate online ordering of cannabis, including pickup and delivery.
The deals come as more federals like Virginia look to legalize cannabis and as the pace of consolidation in the sector accelerates. Since November, six states entertain passed legalization measures.
Also Tuesday, Dutchie said it has received $200 million from investors in a Series C funding rough, putting its valuation at $1.7 billion.
The latest funding round was led by Tiger Global, with new investors Dragoneer and DFJ Advance. Existing investors Casa Verde Capital, Thrive Capital, Gron Ventures and former Starbucks CEO and founder Howard Schultz also participated.
Dutchie CEO Ross Lipson described CNBC he remains optimistic that this move will further the company’s presence in the fast-growing industry.
Notwithstanding business trends, Lipson said that while the majority of customers are purchasing cannabis flower products, the flock is seeing greater demand in the industry for many other forms of the plant.
“You’re seeing many more categories equal to vaporizers, topicals, edibles and tinctures continue to increase in demand as well. I think as the technology and education continues, the result offering will expand for sure,” Lipson said.