Oct 14 (Businesshala) – Cannabis e-commerce platform Duchy said on Thursday it had raised $350 million in its latest funding round, valuing the company at $3.75 billion.
The massive funding round is the Duchy’s second this year. The Bend, an Oregon-based company, raised $200 million in March, when it was valued at $1.7 billion.
Duchy’s CEO and co-founder Ross Lipson told Businesshala: “Dutchy works with more than 5,000 dispensaries across all legal geographies in North America and processes over $14 billion in annual sales for our dispensaries. ” He said that the number of dispensaries has more than doubled in the last one year.
The increase in cannabis use during the COVID-19 pandemic and the expectation of more states to legalize cannabis has increased investment in the industry.
Duchy’s latest funding round was led by venture capital firm D1 Capital Partners and previous investors including Tiger Global, Dragoneer, DFJ Growth, Thrive Capital and Snoop Dogg’s Casa Verde Capital, the company said.
Lipson said the funding would be used to double down on research and development for its products. It charges license fee from dispensaries who use Duchy e-commerce platform to sell to consumers. Lipson said transactions were still mostly in cash because credit card networks are still not open to cannabis transactions.
“We feel like we’re just scratching the surface as an industry and as a company here in the Duchy and there’s a lot of runway ahead of us,” Lipson said.