Phyto Partners portfolio company Greenbits has been swept up in a merger with Dutchie that will value the combined entity at $1.7 billion in a deal led by Tiger Global, with participation from new investors Dragoneer and DFJ Growth, and from existing investors including Casa Verde Capital, Thrive Capital, Gron Ventures, and former Starbucks Chairman and CEO Howard Schultz. As part of the deal, Dutchie will be acquiring Greenbits and LeafLogix, two enterprise resource planning (ERP) and point-of-sale (POS) software solutions serving the cannabis industry.
“This is a great deal for our investment in Greenbits and confirms Phyto’s thesis that capital will seek out ancillary companies in the burgeoning Cannabis industry,” Larry Schnurmacher, founder and Managing Partner of Phyto said. “For the past few years, capital has leaned heavily into the licensed operators, cultivators and retailers, while less than ~5% has been invested into the critical infrastructure the industry desperately needs to become the industry we all see in the future. With this deal that looks to be changing and we think this is only the beginning for cannabis related technology, data, digital marketing and many other verticals in the industry.” Schnurmacher added that “We are now seeing high profile traditional venture capital funds entering the space, something that was unheard of only a few years ago and this in and of itself will drive valuations much higher.”
Phyto Partners has invested in over 30 Cannabis Related Businesses since 2015 including Leaflink, Fyllo, Flowhub and Heally. Most recently, Phyto’s third fund has closed investments in RevOffers, a digital marketing platform and Canix, an ERP software and technology suite for the licensed operators.
Dutchie’s agile, user-centric platform makes it easier than ever for consumers to buy cannabis online as they do for any other purchase while also streamlining retailers’ business operations. Dutchie’s solutions simplify day-to-day operations, so SMBs and enterprises can focus on connecting with customers, driving marketing and sales efforts, and growing their business. Dutchie is powering a new generation of entrepreneurs driving one of the most disruptive consumer trends of the last century.