Dutchie provides software and services to cannabis dispensaries, charging a monthly fee to create and run websites and manage orders. The company says it works with over 5,000 dispensaries in North America and processed $14 billion in annualized sales for those customers. Dutchie reports 100% year-over-year growth with dispensaries and employs about 500 people across 40 U.S. states and Canada. Management plans to deploy capital to accelerate efforts to streamline dispensary operations and to expand R&D and hiring. The company has committed $100 million to R&D over the next 12 months and is scaling its team to keep up with demand. Dutchie’s growth is being driven by wider consumer adoption, health-and-wellness use cases, and more states passing friendlier cannabis regulations. Dutchie is a nearly four-year-old Bend, Oregon company that charges cannabis dispensaries a monthly fee to create and run their websites, process orders and track what needs to be prepared for pick up. The company recently acquired Greenbits and Leaflogix—ERP and POS providers—and folded their roughly 150 employees into Dutchie, effectively doubling the team to about 300 employees. Its valuation surged to $1.7 billion in this round, roughly eight times the value assigned last August after a $35 million Series B. Dutchie says it will use the new capital to develop new products, including discovery and education tools, and to begin expanding internationally. The company is benefiting from pandemic-driven online order growth, recent state-level legalization tailwinds and what it sees as a shifting federal stance toward decriminalization. CEO Ross Lipson emphasizes a retail-first, hyperlocal model even as more customers order online. Dutchie operates a subscription platform that builds and maintains dispensary websites, processes orders, manages payments and tracks items for pickup. The company added contactless payments and a curbside pickup workflow that notifies dispensaries when customers arrive and helps locate vehicles. Dutchie says it works with over 1,300 dispensaries across 32 markets, processes more than 75,000 orders a day, powers over 25% of dispensaries and handles roughly 10% of all legal cannabis sales worldwide. The business grew rapidly during the COVID-19 pandemic—reporting a roughly 600% spike in one month and an overall 700% surge in sales volume—and it scaled its technology for approximately six times the prior load. Headcount rose from 36 to 102 employees and the company aims to double the team by the end of 2021. Dutchie plans to keep online ordering and e-commerce features as core offerings as customers continue to expect them. Dutchie builds online ordering and website software for cannabis dispensaries, positioned as a Shopify-like platform focused on pickup ordering. Dispensaries pay a monthly subscription fee; Dutchie does not take transaction cuts and it does not provide delivery (dispensaries handle that). The two-year-old, 36-person company says its software is used by 450 dispensaries across 18 states and is processing roughly $140 million in gross merchandise volume. Dutchie emphasizes product and user experience for both consumers and dispensaries and provides operational support to ensure orders are ready for pickup. The company is led by brothers Ross (CEO) and Zach Lipson (chief product officer), who have prior entrepreneurial experience. Financially, Dutchie has now raised $18 million in total, including the newly closed Series A. Dutchie, founded in 2017 in Bend, Oregon, is an on-demand marijuana and cannabis delivery service that builds online ordering tools to help consumers navigate the delivery market. The product aims to replicate the choice and convenience of online food ordering for legal cannabis purchases. The company operates in Oregon, Washington and Michigan and is launching in Colorado, Nevada and California this month, working with about 100 dispensaries. In its first year Dutchie recorded $2.5 million in gross merchandise volume and it employs 14 people, many of whom work remotely. Dutchie has signed an agreement with Canopy Rivers to operate in Canada and plans aggressive rollouts across states where medical marijuana is legal and into Canada. CEO Ross Lipson says scalability is the company’s central strategy as it expands.

Total raised

$603M

Funding rounds

5

Latest round

Series D

Latest activity

Oct 2021