Cannabis E-Commerce Startup Dutchie Raises $15M, With Gron Ventures As Lead Investor
Dutchie, a company that provides online cannabis ordering services, announced Wednesday that it has closed a $15-million Series A round led by Gron Ventures.
The notable investors supporting Dutchie include Snoop Dogg's Casa Verde Capital, Sinai Ventures, DoorDash founders and early executives, Kevin Durant's and Rich Kleiman's Thirty Five Ventures and Shutterstock Inc (NYSE:SSTK) founder and CEO Jon Oringer.
"We're thrilled to have such a great group of investors to help guide us through this next phase of the business," Ross Lipson, Dutchie’s CEO and co-founder, said in a statement.
"Scaling a company has its share of challenges, especially in an emerging new industry; however, having seasoned investors in our corner who can lend their experience and expertise will help us take Dutchie to the next level."
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Wilder Ramsey, the managing partner of Gron Ventures, said a "generational" opportunity exists in cannabis e-commerce.
"Dutchie's remarkable growth is a product of the value it is adding to dispensaries as a revenue-driving partner, and a majority of leading multistate operators are already on the platform,” Ramsey said in a statement.
With the new round, the two-year-old startup has raised a total of $18 million.
More than 450 dispensaries across 18 states are paying a monthly subscription fee and using the platform.
Dutchie has reached $140 million in annualized gross merchandise volume, according to the company.
In an interview with TechCrunch, Lipson detailed the differences between Dutchie and his previous food delivery business.
“We’re focused on the customer all day, every day, with a team that ensures that they have support, that they receive their orders, that the orders are out the door quickly or at least, ready for pickup. We make sure the photos work, that different potencies are marked. Our system is kind of like a Shopify of the cannabis space maybe meets DoorDash.”
Dutchie doesn't provide delivery services for legal reasons, the CEO told TechCrunch — the dispensaries take care of that. The company only charges for its software services, not on the basis of transaction volume, he said.
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