Jane Technologies Raises $100M to Fuel Cannabis E-commerce Growth

Jane Technologies: Powering the Future of Cannabis E-commerce

It’s crucial to understand that Jane Technologies isn’t striving to *be* the Amazon of cannabis. A more accurate comparison would be to Shopify, and this distinction is significant. Rather than constructing a centralized marketplace, Jane Technologies focuses on providing the infrastructure for dispensaries to establish their own online presence.

Currently, the company processes approximately 20% of all legal cannabis sales within the United States. Jane Technologies envisions a future where cannabis retail is dominated not by a single platform, but by individual dispensaries offering online ordering capabilities, and they aim to be the technology provider enabling this shift.

Recent Funding and Expansion Plans

Jane Technologies recently announced a $100 million Series C funding round, bringing their total funding to $130 million since its inception in 2015. Honor Ventures spearheaded this round, with founding Managing Partner Jeffrey Housenbold joining Jane Technologies’ board of directors.

The newly acquired capital will be allocated towards expanding the company’s digital reach and bolstering its teams across various operational departments. A key focus will be the development of new features and the broadening of their product suite to cater to both large and small cannabis businesses.

The Rise of Online Cannabis Retail

As consumer expectations evolve, online retail is rapidly becoming the standard for cannabis purchases. Jane Technologies offers a comprehensive, turn-key solution that allows dispensaries to quickly establish a robust online storefront.

Socrates Rosenfeld, co-founder and CEO of Jane Technologies, emphasizes that the company’s current position is the result of a strategic decision made back in 2015. He explains that they anticipated a future where e-commerce would involve the complete digitization of all commerce, rather than relying on centralized marketplaces.

A Vision for the Future of E-commerce

“We are witnessing the next evolution of e-commerce,” Rosenfeld stated in an interview with TechCrunch. “This trend extends beyond the cannabis industry and could impact various retail sectors, including alcohol, convenience goods, restaurants, and groceries.”

He believes local businesses now require digital connections to their communities, and the cannabis industry presents a particularly challenging environment for establishing these connections. Rosenfeld expressed pride in the team’s accomplishments and acknowledged that significant work remains, made possible by the recent $100 million investment.

Impact of the COVID-19 Pandemic

The COVID-19 pandemic significantly accelerated the growth of online cannabis sales. Prior to the pandemic, only 17% of legal cannabis sales were conducted online. However, during the peak of the pandemic, this figure surged to 52%.

Currently, as of mid-2021, Jane Technologies reports that online sales now account for 38% of all legal cannabis transactions. This data reinforces the notion that the pandemic acted as a catalyst for the adoption of online cannabis retail.

Growth Metrics and Platform Expansion

In 2019, Jane Technologies processed $100 million in transactional volume, serving one million customers and collaborating with 1,000 dispensaries. The company projects a substantial increase to $3.5 billion in transactional volume in 2021, while now partnering with 2,100 dispensaries, including those in Canada.

Furthermore, the number of products listed on their platform has nearly doubled, reaching 700,000 items, up from 350,000. This demonstrates a significant expansion in the variety of cannabis products available to consumers.

Partnerships and Platform Innovations

Rosenfeld highlighted the unique opportunity presented by the cannabis industry, stating, “We were fortunate to emerge from an industry lacking a direct consumer ecosystem.” This necessitated the creation of a system to connect consumers with brands and retailers, achieved through partnership rather than competition.

Last month, Jane Technologies established a partnership with High Tide, its first Canadian retailer. Additionally, the company recently launched Jane Roots, a comprehensive e-commerce platform designed to empower dispensaries to focus on front-end design while Jane manages the necessary retail integrations.

Industry Expert Endorsement

Jeffrey Housenbold commented, “Over the past 25 years, I’ve observed numerous e-commerce companies, but few possess the potential to become enduring global platforms.” He believes Jane Technologies has the necessary components to evolve into the next eBay or Shopify.

Housenbold further stated that Jane Technologies is creating a mutually beneficial environment for all stakeholders – brands, retailers, and consumers – and is establishing itself as the trusted service provider for the future of global cannabis commerce.