Cannabis tech firm Eaze has raised a total of $35 million in funding as part of its plans to enter the retail and distribution sectors of the cannabis space. The company announced they raised $20 million from a Series D round in addition to the $15 million raised in a bridge round of funding last month.
CEO Ro Choy described the firm’s “verticalization” plan – which would see Eaze touch the plant as a retail operator and wholesale distributor – as its “second act.”
“Until now, we’ve invested in proving our market fit, building an enormous and loyal customer base, and becoming California’s biggest marketplace for legal cannabis delivery. Now, we’re proving we can make this business work in a more sustainable and profitable way, while continuing to grow Eaze’s existing services.” – Choy in a statement
Eaze had been facing a cash shortfall and, after cutting about 30 jobs over the summer, had reportedly planned another round of layoffs. According to TechCrunch, the company had recently lost its chief strategy officer, chief of staff, and several members of its engineering staff in recent months. Eaze yesterday appointed Megan Miller, the company’s former vice president of finance and marketplace, as chief operating officer and named John Curtis as the permanent chief financial officer. Curtis has been acting as the interim CFO since October 2019.
In January, Eaze acquired DionyMed Brand’s rights to retail licensee Hometown Heart’s depots in Oakland and San Francisco, and now has oversight of Hometown Heart’s day-to-day operations.
The company indicated it saw a 97 percent increase in new signups on the platform last year, and a 74 percent increase in first-time deliveries.
Exclusive offer from our sponsor:
Get daily news insights in your inbox. Subscribe