Dutchie, the Shopify-like platform for cannabis and marijuana products, has raised $15 million in its Series A funding round.
The cannabis-focused venture fund Gron Ventures led the round witnessing participation from previous investors including Casa Verde Capital, Thirty-Five Ventures, Sinai Ventures, and individual investors including Shutterstock Founder and CEO Jon Oringer.
The participation of Gron Ventures does not come as a piece of surprising news as it had earlier announced its plans to invest at least $117 million in cannabis-based startups.
Launched in 2017 by the brothers Ross Lipson and Zach Lipson, and Samuel Ellis, Dutchie offers a platform for cannabis and marijuana products, using which customers can order them and pick them up or get it delivered to them from local dispensaries.
The platform is touted to be the Shopify version of cannabis products. Users can find local cannabis retailers, browse their offerings, and order them through the web or mobile app.
Both the Lipson brothers are serial entrepreneurs who drew their inspiration from their father, who himself was a founder of a business and ran it successfully for over 35 years.
Ross is a college dropout who plunged into business very early in his life. He co-founded one of Canada’s first online food delivery startups and later sold it. His brother Zach is also a serial entrepreneur, following his father’s footsteps.
“It is hard to know the actual count of dispensaries because they are always being formed, getting acquired or going out of business, but counting registered dispensaries, we work with more than 15% of them right now,” revealed Ross on the unprecedented cannabis market growth and their reach.
The 2-year-old startup generates revenue from SaaS subscription. The dispensaries that onboard the platform have to pay a monthly subscription to use its proprietary software to create their website, receive and manage the orders.
Dutchie doesn't deliver the products due to legal restrictions, and hence the dispensaries handle the delivery part. The startup operates in 18 states in the US and has raised a total of $18 million to date.
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