Jack Smith
Marketing automation platform Baker, the self-described “Salesforce of Cannabis,” has received $8 million in a new Series A funding round.
The new funding will let the Colorado-based Baker keep growing, particularly in California and Washington, where it recently acquired Seattle-based Grassworks, the second-largest customer relationship management platform in the cannabis industry. It will also use the funds to open an office in Los Angeles, starting next year.
“We’ve built the industry’s leading CRM product, and now we’re truly focused on providing a platform to allow Baker and our partners to offer best-of-breed solutions to our massive retail network,” Joel Milton, CEO of Baker said in a statement. “This funding will allow us to continue to execute on our platform strategy, and help all of our clients grow their businesses — including those in California gearing up for adult use.”
The funding round was led by Poseidon Asset Management and includes other venture capital firms, such as Panther Opportunity Fund and Phyto Partners. It also included participation from previous investors. The $8 million in funding is on top of $3.75 million the company has previously raised.
Keeping Dispensaries Happy
Baker uses what it describes as unique “data-driven approach” to help cannabis dispensaries keep customers happy and boost revenue. The company boasts that its clients see a 40% boost in order size and a 300% return on investment in just six weeks. Its software is used by over 700 dispensaries across the country, helping the company attract the new funding.
Baker has also created a robust customer loyalty program that dispensaries are using to tap repeat business. Loyalty programs are relatively new to cannabis retailers but are quickly becoming a favorite way to communicate with customers.
“Baker has continued to grow at an impressive rate, and is breaking away from the pack in a big way,” said Morgan Paxhia, Co-founder and Managing Director at Poseidon Asset Management. “Unlike anyone else in the space, the team continues to cultivate and craft unique solutions for its customers and scale at a remarkable rate.”
