Online cannabis wholesale platform LeafLink purchased one of its competitors, Leaf Trade, for an undisclosed sum, the companies announced Tuesday.
The new acquisition by LeafLink will fuel more growth for the ancillary company, which said in a press release that Leaf Trade will bring with it plenty of new customers, since it caters specifically to multistate operators and enterprise cannabis companies.
Following the acquisition, LeafLink is expecting to hit $9 billion in wholesale gross merchandise sales annually, the companies said in the release.
The purchase also allows LeafLink to expand its portfolio of service offerings in the cannabis space, by adding “business banking, payment options like Payment on Sell-Through, data insights, B2B advertising and retailer tools,” the release said.
Leaf Trade CEO Brian Wilson noted that one of the company’s point-of-sale software partners, Sweed, “will remain an independent business” but closely tied operationally to Leaf Trade. He added that it will also help boost LeafLink’s overall offerings to the cannabis industry.
The deal is part of a broad effort by LeafLink to widen its cannabis footprint, as it has debuted several other new services this year, as well as completing the purchase of Dama Financial, which gave LeafLink more ability to connect customers with banking and financial services. Terms of the Dama deal were also not disclosed.
LeafLink in June launched its aforementioned Payment on Sell-Through, which guarantees purchases made on the LeafLink platform and is designed to help solve the systemic issue of unpaid bills in the sector. The company also launched LeafLink Plus, a data subscription service.
To help pay for the expansion, LeafLink earlier this year raised $100 million in a Series D funding round, which was later upsized to $125 million. Investors in that round included CPMG, Nosara, L2 Ventures, Thrive Capital and Tiger Global, the company said.
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