The cannabis compliance technology platform Fyllo said Tuesday it has raised $30 million via an oversubscribed Series B round co-led by JW Asset Management and Sol Global.
Other participants in the funding round include Entourage Effect Capital, Arcadian Capital Management, K2, Salveo Capital, George Steinbrenner IV and 2 NRP Managers, LLC, an investment group led by Ben Lurie.
Fyllo’s $30M Series B: Around 60% of the capital came from outside of the cannabis space, according to Fyllo, revealing the company’s potential to reach other highly regulated industries with its services.
The cannabis tech company plans to use the collected money to double its engineering team, advance activities and sales and speed up the delivery of compliance automation solutions.
Furthermore, the team will work on incorporating the technologies obtained from DataOwl — such as CRM, point-of-sale and retail marketing — into the platform.
“The cannabis industry has benefited from rapid growth and innovation yet has lacked the enterprise software solutions to enable it to scale akin to other regulated industries,” said Chad Bronstein, Fyllo’s co-founder, and CEO.
“When we founded Fyllo in 2019, we saw the void in the cannabis market for technology services and the opportunity to create a definitional and disruptive solution. This vision has played out in the last 20 months as Fyllo now works with nearly every major multi-state operator in the U.S., removing barriers for these companies to scale with the speed of their mainstream peers.”
Fyllo’s Cannabis Clients: Among multi-state cannabis operators that use the company’s Fyllo Compliance Cloud suite of SaaS software are Columbia Care (NEO: CCHW) (CSE: CCHW)(OTCQX: CCHWF) and Grassroots Cannabis.
Since its inception in 2019, Fyllo has raised almost $60 million.
Kraus Joins Fyllo Board: In addition, Fyllo appointed Peter Kraus, the chairman and CEO of Aperture Investors and former CEO of AllianceBernstein, to its board of directors.
Aperture Investors is an assets management company that Kraus launched in 2018. He has almost 50 years of professional experience across financial and business sectors.
“Fyllo’s has developed revolutionary enterprise solutions for sectors which have long struggled with achieving compliance at-scale,” Kraus stated. “As a board member, I look forward to working with Chad and Fyllo’s management team to help the company expand its market share within its core expertise of managing data and compliance activities in consumer oriented highly regulated industries.”
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