Cannabis e-commerce platform Dutchie said Thursday it raised $ 350 million in its most recent funding round, valuing the company at $ 3.75 billion.
The massive round of funding is Dutchie’s second this year. The Bend, Oregon-based company raised US $ 200 million in March, when it was valued at US $ 1.7 billion.
“Dutchie works with more than 5,000 dispensaries in all legal regions of North America and processes over $ 14 billion in annualized sales for our dispensaries,” Ross Lipson, CEO and co-founder of Dutchie, told Reuters. He said the number of dispensaries had more than doubled in the past year.
The increase in cannabis use during the COVID-19 pandemic and the wait for more states to legalize cannabis has increased investment in the industry.
Dutchie’s latest round of funding was led by venture capital firm D1 Capital Partners and previous investors including Tiger Global, Dragoneer, DFJ Growth, Thrive Capital and Casa Verde Capital from Snoop Dog participated, the company said. .
Lipson said the funding would be used to double the research and development of its products. Dispensaries that use the Dutchie e-commerce platform to sell to consumers need a license fee. Lipson said transactions were still mostly cash, as credit card networks still haven’t opened up to cannabis transactions.
“We feel like we are only scratching the surface as an industry and also as a company here at Dutchie and there are a lot of leads ahead of us,” said Lipson.
(Reporting by Jane Lanhee Lee; Editing by Aurora Ellis)