Dutchie an online ordering platform, based out of Bend, Oregon for the last few years, just announced a series c fundraising of $200 million with simultaneous acquisition of two of the largest point of sale vendors. Greenbits, a big player on the West Coast, and Leaf Logix based out of New York joined Dutchie to roll out a comprehensive program and add more value to dispensaries and consumers. With the mission to provide safe and easy access to Cannabis while helping power positive societal changes Dutchie is a company to watch. Watch to learn more.
Harry Brelsford & Ryan Porter 0:02 Hey 420MSP Harry here back with Ryan Porter, a real go getter entrepreneur in the cannabis space. How you doing? Ryan? doing? Good. How are you? Very good, good. Hey, you had some insights in a recent community meeting, as I always kind of give a plug the RSPA cannabis community we meet once a month, and you were able to quickly add some context to the probably the biggest news in March that Dutchie raised 200 million and acquired Greenbits and Leaf Logix and you’re pretty excited about it. So what’s going on there? Yeah, absolutely. So, Dutchie is a Dutchie. A has been an online ordering platform, based out of Bend, Oregon for the last few years, they’ve been a really strong entrant coming from a pretty awesome set of entrepreneurs who had a background and online food ordering. And they read that, as you mentioned, they just announced the series c fundraising of $200 million with simultaneous acquisition are two of the largest point of sale vendors. So Greenbits, a big player in early players a dominant in the West Coast. And then Leaf Logix based out in New York leaf logics, not only is a point of sale company, but they also have grow software for managing grows. So they kind of touch the entire food chain, let’s call it and that you know, it’s a really exciting roll up. I think a lot of people always talk about, oh, someone needs to roll up. Well, there’s a lot to roll up. But this is probably one of the bigger ones that we’ve seen with start. Yeah. And what’s it mean that the cut, what I heard from you the other day is, this is the full product stack. It’s it’s now or it’s an exaggeration, but they’re putting the stack together, you seem to like the idea of the quite frankly, vertical integration. Yeah, that means kind of a vertical integration on the technology piece. But I’d say one of the one of the hard problems in the industry is I get, I get Harry’s peanut butter cups from a vendor, and I have to turn them into a product and my point of sale, and I’m going to sell them is that product catalog is a really difficult piece within the cannabis technology industry. And as someone like Dutchie can better align with the operations, we have a retail point of sale, obviously, their digital retailing experience, I think it’s a really great piece. Now, there’s still some really other important pieces, specifically marketing, data analytics. So I think there’s a lot more out there that that brands and retailers are using. But I think we’re seeing one of the first really strong roll ups where it really made sense.
Harry Brelsford 2:49 Yeah, yeah. That Yeah, I tend to agree, you know, when in when you’re in early markets, I always felt.com era, for example, that people just created companies to borrow money, getting money from investors, but it didn’t necessarily make sense. And of course, the free market also responded ultimately the.com became.gone. So a lot of deals did not make sense. Final couple of comments here since coming in at a $1.7 billion valuation folks. That’s a whole nother interview in a different realm another day about how they have a cap table that comes up with the the valuation but this Indeed, I believe, creates Well, it certainly creates a unicorn, because I don’t think Dutchie was worth over a billion before the acquisition. Right. So this was the roll up that made him a unicorn.
Ryan Porter 3:43 Yeah, absolutely. And they rolled the two companies they acquire have, you know, probably some of the stronger technology revenues in the industry. So while they are a private company, and they haven’t shared anything on revenues is you know, we can anticipate that as a technology roll up. They have very strong revenues.
Harry Brelsford 5:39 All right, Ryan. Well, man, you’re the busiest man in the cannabis sector, Idaho. So a little bit of Ryan time as a real gift. I want to thank you, and we’ll talk to you soon.
Harry Brelsford & Ryan Porter 5:49 All right. Thanks so much, Aries. Talk to you again soon.