Crunchbase: Cannabis Technology Platform Dutchie Rolls Up $200M Series C To Hit $1.7B Valuation
Check out Dutchie in the article below!
Crunchbase News – March 16, 2021
By Christine Hall
Dutchie, which outfits dispensaries with the technology and tools needed to provide safe and easy access to cannabis, raised its largest funding to date, $200 million in a Series C, to value the company at $1.7 billion.
Tiger Global led the round and was joined by new investors Dragoneer and DFJ Growth, as well as existing investors Casa Verde Capital (co-founded by Snoop Dogg, whose investments we profiled here), Thrive Capital, Gron Ventures and Howard Schultz. The new funding gives Bend, Oregon-based Dutchie $253 million in total funding since being founded in 2017, according to Crunchbase data. It previously raised a $35 million Series Bround last August.
“This round is one of the largest in cannabis and a landmark round that brings top-tier people to the space,” Ross Lipson, Dutchie co-founder and CEO, told Crunchbase News. “The industry is bringing change, and it’s a beautiful opportunity to be a part of it.”
Since last November, six new states passed legalization measures for cannabis and arecord-high percentage of Americans now support legalization as they’ve learned about the societal benefits, including improving health and wellness, the impact on social justice, and powering local communities through a safe revenue stream, Lipson said.
Dutchie connects consumers to local cannabis retailers and is capitalizing on trends that show the legal marijuana industry is one of the fastest-growing in the world and is slated to reach $30 billion in value in 2025. At the same time, UBS expects one quarter of total U.S. retail spending to be online. However, dispensaries are still fragmented and nascent even though the industry is poised to grow rapidly at a 35 percent compound annual growth rate, Lipson said.
The company focuses on being an education and discovery tool so cannabis buyers can learn about cannabis, what works for them and what is available at their nearest dispensary, so they can make an informed buying decision, he added.
“We raised our Series B during the pandemic and saw accelerated growth, driven by the industry, as a whole, being deemed an essential business during that time and by consumers adopting the product,” Lipson said.
The new capital will be deployed in new hires, expanding into new markets and product development.
Meanwhile, Dutchie is among a dozen companies that announced Tiger Global-involved capital raises during March, according to Crunchbase data.
“We work with companies that have the potential to reshape major parts of the global economy,” said John Curtius, partner at Tiger Global, in a written statement. “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.”
In addition to the new round, Dutchie announced the acquisitions of cannabis retail platform Greenbits, which has raised $41 million since 2014, according to Crunchbase data, and cannabis software provider LeafLogix. Both companies bring point-of-sale expertise and software into Dutchie so it can continue developing an all-in-one technology platform.
The company also brought in Tim Barash, former CFO and chief business officer at Toast, who will serve as the company’s new executive chairman.
“I’ve admired Toast and am excited to welcome him as a partner,” Lipson said. “He is bringing his expertise and will move the industry forward.”