Dutchie, an Oregon-based company that charges cannabis retailers a monthly fee to create and manage companies websites and fulfill orders, is on a roll this year, raising over USD 350 million in D Series funding at a valuation of USD 3.75 billion.
This new valuation is almost double what was announced when Dutchie received USD 200 million in Series C funding in March at a USD1.7 billion valuation. At the time, Dutchie’s valuation was roughly eight times what it had after closing on USD35 million in Series B funding in August.
D1 Capital Partners led the current round of fundraising, which included existing investors Dragoneer, DFJ Growth, Gron Ventures, Thrive Capital, Casa Verde Capital, and Tiger Global. Park West Asset Management, Willoughby Capital, and Glynn Capital are among the new investors. The company’s income has risen to over USD 600 million as a result of the latest round of funding.
The company’s strong tailwinds, according to Dutchie co-founder and CEO Ross Lipson, are driven by a social movement toward wider usage of cannabis products, health & wellness benefits, and more states implementing friendlier rules.
The decision is in, and cannabis is a positive factor. “That is the most significant development,” Lipson told TechCrunch. “The cannabis business is the fastest growing, with a 35 percent year-over-year increase. In North America, Dutchie works with over 5,000 dispensaries and has handled USD 14 billion in annually transactions for them. With dispensaries, we’ve seen a 100 percent year-over-year increase.
Certainly, Dutchie is constantly striving to advance the sector by educating people about the advantages of cannabis and advocating for broader legalization and regulatory reform. More cannabis firms are incorporating technology into their operations, drawing expertise and capital. Crunchbase stated in April that USD357 million has been invested in cannabis firms so far in 2021, with forecasts predicting that the market will be worth USD100 billion in the United States by 2030.
Dutchie has already committed USD 100 million to research & development activities over the next twelve months, and some of the new funds will go toward that, according to Lipson. He’ll also be adding to the company’s 500-person workforce, which spans 40 states and Canada.
In terms of the cannabis firm’s future, it will experience significant adoption, particularly as more people get informed on how to choose the right products and modalities and as more states legalized cannabis.
There are other measures, such as the Safe Banking Act, which will assist banks in providing services to cannabis-related firms, and the More Act,” he continued. “We don’t expect federal legalization in the foreseeable future, but we remain hopeful.