Debra Borchardt
It’s one of the least known cannabis companies for people outside the industry, but e-commerce company Dutchie is quickly making a name for itself. The company just completed a $35 million Series B funding round, bringing its total funding to $53 million to date.
Since it is still private company, it has managed to fly below the radar but insiders were already jumping on board. Dutchie’s investors include: Snoop Dogg’s Casa Verde Capital, Kevin Durant’s Thirty Five Ventures, Thrive Capital, Gron Ventures, and Howard Schultz, Founder and Chairman Emeritus of Starbucks Coffee Company. “In one of the fastest-growing industries in the world, Dutchie is defining how the modern cannabis consumer experience should look and feel for dispensaries and customers alike,” said Ross Lipson, CEO and Co-founder at Dutchie. “We have spent three years building the largest online ordering service in cannabis and now is the time to take Dutchie to the next level. We will accelerate in every aspect, from building a world class team, to delivering the industry’s best product, and continuing to push the boundaries with innovative and exciting ways to connect consumers and dispensaries.”
The company was launched in 2017 in Bend OR with three dispensaries. By 2018, it was in 50 stores and closed a $3 million seed round from Casa Verde Capital and high profile angel investors. In 2019, the company had grown to 245 stores in nine markets and raised another $15 million. It is now in 1300 stores and 32 active markets. Lipson added, “We’re excited about the opportunities our new funding round gives us to continue recruiting top talent and developing innovative technology and products to meet the evolving needs of dispensaries and customers while helping the legal market mature and grow.”
Grabbing Market Share
To get an idea of how big Dutchie is getting consider that this company processes 10% of all legal cannabis sales worldwide, and powers 25% of all legal dispensaries across 30 markets and 301 cities in the United States and Canada. Dutchie said in a statement that it processes approximately 75,000 orders a day—a marker that continues to increase—and is facilitating over $2.4 billion in annualized sales. The e-commerce solution equips dispensaries of any size with the necessary tools to meet surging market demand for online ordering, curbside pick-up, digital payments, and deliveries.
“Since leading their first round of financing in 2018, the Dutchie team has continued to impress us with their maniacal focus on execution,” said Karan Wadhera, the Managing Partner of Casa Verde Capital. “Under Ross’ leadership, the business has achieved unprecedented growth across every critical metric.”
COVID Opportunity
While the pandemic has proven to be a challenge for many companies, Dutchie was actually in a position to capitalize on market disruption. Since the company provides cannabis retailers and consumers a socially distant and compliant way to shop and order online, it was able to quickly solve many owners problems. The company offers tailored software that streamlines operations by automatically updating a retailer’s online menu, and can give customer support with an average response time of less than one minute.
This latest investment reflects the company’s exponential trajectory in just three years and firmly establishes Dutchie as the clear market leader. The company is also hiring for several remote jobs that can be found on its website.
